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Futures index rises on debut day
By Winny Wang |
April 16, 2010, Friday
|
Online Edition
Online Edition
CHINA'S first stock index futures rose on their trading debut today despite a sluggish spot market, as investors favored the new derivative product that will allow them to make bets on a declining market for profit.
The nearest May 2010 contract, to be delivered on May 21, closed at 3,415.60 points, up 0.49 percent from the base value of 3,399 points set for the all the contracts by the China Financial Futures Exchange a day earlier.
The June, September and December contracts closed at 3,441.60 points, 3,512 points and 3,557 points, respectively.
The spot CSI300 index, on which the futures are based, closed at 3,356.33 points, down 1.13 percent. The CSI300 index is composed of the most actively traded and highly capitalized shares on the Shanghai and Shenzhen markets.
The first contracts to trade are for May, June, September and December. The margin for May and June contracts will be 15 percent, while the margin for September and December contracts will be 18 percent.
The daily cap for May and June contracts will be 10 percent based on the benchmark price. For September and December contracts, the cap will be 20 percent.
Investors must have a minimum 500,000 yuan (US$73,000) to open an account.
Index futures are agreements to buy or sell an index at a preset value on an agreed date. Often used as hedging tools, they allow an investor to make bets on the direction of an entire index rather than individual stocks.
China established the financial futures exchange in 2006 in preparation for the debut of index futures. But worries about speculation and global financial turmoil delayed its launch several times.
The nearest May 2010 contract, to be delivered on May 21, closed at 3,415.60 points, up 0.49 percent from the base value of 3,399 points set for the all the contracts by the China Financial Futures Exchange a day earlier.
The June, September and December contracts closed at 3,441.60 points, 3,512 points and 3,557 points, respectively.
The spot CSI300 index, on which the futures are based, closed at 3,356.33 points, down 1.13 percent. The CSI300 index is composed of the most actively traded and highly capitalized shares on the Shanghai and Shenzhen markets.
The first contracts to trade are for May, June, September and December. The margin for May and June contracts will be 15 percent, while the margin for September and December contracts will be 18 percent.
The daily cap for May and June contracts will be 10 percent based on the benchmark price. For September and December contracts, the cap will be 20 percent.
Investors must have a minimum 500,000 yuan (US$73,000) to open an account.
Index futures are agreements to buy or sell an index at a preset value on an agreed date. Often used as hedging tools, they allow an investor to make bets on the direction of an entire index rather than individual stocks.
China established the financial futures exchange in 2006 in preparation for the debut of index futures. But worries about speculation and global financial turmoil delayed its launch several times.
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