Today marks the debut of two new stock-index futures tracking the SSE 50 and China Securities 500 at the China Financial Futures Exchange.
The SSE 50 tracks large-scale listed companies, with a market value representing nearly one-third of the total on Chinese mainland's A-share market. They are mostly from China's pillar industries, including the finance, real estate and energy sectors.
By comparison, the China Securities 500 focuses on smaller listees, which together only make up about 14 percent of the total market capitalization. But these smaller firms are seen as a major force behind China's structural transformation and innovation.
Industry insiders say, the launch of the two futures tracking the two indices will have major significance on China's stock market. Here's Zhang Miaoning, Deputy General Manager of Galaxy Futures.
"The two new futures complement and help strengthen the existing Hushen 300 Index future. They also give stock investors a hedge against risks, while helping them make the right investment decisions. They also help diversify their investment portfolio," said Zhang Miaoning, Deputy GM, Galaxy Futures.
Industry insiders say, the launch of the two stock index futures will help boost the liquidity of blue chips, and improve investor confidence in the short term. In the long term, it will help improve market efficiency and investors' risk management.
