LINE

Text:AAAPrint
Economy

China eases curbs on stock-index futures trading

1
2018-12-02 22:49:13Xinhua Editor : Wang Fan ECNS App Download

The China Financial Futures Exchange (CFFEX) announced Sunday that it was further easing restrictions on domestic stock index futures trading in a "sound and orderly" way in a bid to facilitate market functions.

The move was made after comprehensive evaluation of market risk and active improvement of supervision system, the Shanghai-based exchange said in a statement.

The CFFEX said it will reduce the margin requirement for Hushen 300 index futures and SSE 50 index futures to 10 percent from 15 percent and that for CSI 500 index futures to 15 percent from up to 30 percent from Monday's clearing.

Commission fees for intra-day position-closing will be lowered from 0.069 percent to 0.046 percent of the transaction value.

In addition, the exchange also raised the intraday trading limit on a single index futures contract by non-hedging accounts from 20 lots to 50 lots, with anything above seen as abnormal trading. Hedging transactions will be excluded from this restriction.

Dong Dengxin, head of the research institute of finance and securities with Wuhan University of Science and Technology, said the easing could help lower transaction cost and improve market liquidity.

Regulators tightened stock index future trading in 2015 to curb speculation and stabilize the market following a stock market plunge.

The curbs had once helped stabilize the capital market and prevent further losses, but restrained liquidity and functions of the stock index futures.

China launched the stock index futures in 2010 to boost the capital market, allowing investors to hedge risks and ease fluctuations in market.

MorePhoto

Most popular in 24h

MoreTop news

MoreVideo

News
Politics
Business
Society
Culture
Military
Sci-tech
Entertainment
Sports
Odd
Features
Biz
Economy
Travel
Travel News
Travel Types
Events
Food
Hotel
Bar & Club
Architecture
Gallery
Photo
CNS Photo
Video
Video
Learning Chinese
Learn About China
Social Chinese
Business Chinese
Buzz Words
Bilingual
Resources
ECNS Wire
Special Coverage
Infographics
Voices
LINE
Back to top Links | About Us | Jobs | Contact Us | Privacy Policy
Copyright ©1999-2018 Chinanews.com. All rights reserved.
Reproduction in whole or in part without permission is prohibited.