China Economic Review
Charting China’s changing economic terrain · Since 1990

Derivatives trading may make China's markets world's busiest

April 8, 2010

The introduction of index futures next week will be curbed by measures to manage risk, but may eventually transform China’s equity markets into the world’s busiest, the South China Morning Post reported. During the opening ceremony for the derivatives market Thursday, Vice Premier Wang Qishan stated that regulators would prioritize risk-control during the Shanghai launch of index futures on April 16. Wang said, "We must strike a balance between liberalization and regulation." The China Securities Regulatory Commission has set margin requirements for index futures at 12%, but 3,000 investors have already opened new accounts at the new futures exchange. Qualified foreign institutional investors (QFII) in A-shares remain barred from index futures trading.

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