No word yet on banks role in index futures
By Zhang Fengming |
March 16, 2010, Tuesday
|
Print Edition
Print Edition
CHINA'S top banking regulator is still discussing with other regulators whether to allow banks to clear and settle stock index futures, it said yesterday.
Chinese banks are banned from investing in stock index futures and it's still not decided if they can become clearing and settling members of the futures market, the China Banking Regulatory Commission said yesterday on its Website.
Stock index futures, China's long-awaited first financial derivatives, are expected to debut in China as early as April. Shang Fulin, chairman of the China Securities Regulatory Commission, said on March 5 the government may launch trading of the futures in mid or late April.
The futures contract is based on the CSI 300 index that tracks the top 300 Chinese mainland-listed firms.
Few individual investors have opened accounts to trade the contracts as the stock regulator has set the entry bar high to trim risks for the financial derivatives. Investors need 500,000 yuan (US$73,000) to open an account and have to participate in mock trading for at least 10 sessions. Futures bear higher risks and returns unlike spot products as investors can leverage on them but losses can also be huge.
Chinese banks are banned from investing in stock index futures and it's still not decided if they can become clearing and settling members of the futures market, the China Banking Regulatory Commission said yesterday on its Website.
Stock index futures, China's long-awaited first financial derivatives, are expected to debut in China as early as April. Shang Fulin, chairman of the China Securities Regulatory Commission, said on March 5 the government may launch trading of the futures in mid or late April.
The futures contract is based on the CSI 300 index that tracks the top 300 Chinese mainland-listed firms.
Few individual investors have opened accounts to trade the contracts as the stock regulator has set the entry bar high to trim risks for the financial derivatives. Investors need 500,000 yuan (US$73,000) to open an account and have to participate in mock trading for at least 10 sessions. Futures bear higher risks and returns unlike spot products as investors can leverage on them but losses can also be huge.
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