CSRC issues rules for index-futures trading

The China Securities Regulatory Commissions (CSRC) issued draft guidelines for equity funds who want to trade index futures, Bloomberg reported. The CSRC said that funds should use index futures for hedging; bond and currency funds are prevented from trading such products. Funds are not allowed to hold long positions worth more than 10% of their net asset value or short positions worth more than 20% of the value of equities held at the end of daily trading. Open-ended funds and closed-ended funds are subject to different restrictions. Shang Fulin, chairman of the CSRC, said that Beijing may introduce index futures in mid or late April.