Sectors

Skip Navigation LinksHomeSectors - EditorialOpinion: China right to take slow road on futures

Opinion: China right to take slow road on futures

Date: 10 Mar 2010

Trading in stock index futures is set to start next month in China after years of preparation. Investors say the minimum deposit of Rmb500,000 is too onerous, but the regulator’s push for a high entry barrier is the right one.

Keywords (click to search): [editorial] [China] [stock index futures] [Zhu Yuchen]

Pamela Tang
After years of waiting for China to launch its first stock index future, some commentators are already predicting muted demand for them. While likely to be true initially, that’s not actually a bad thing at all.

Domestic and foreign investors were abuzz with excitement when Beijing mooted the country’s first equity derivative in September 2006.

It was hailed as a way to accelerate the development of China’s immature equity markets, as investors could now effectively short the market. That meant investors would no longer be restricted to one-way bets.

But the excitement fizzled out in the years that it took to bring the plan to fruition....

To continue reading the rest of the article, you will need to be an Asiamoney subscriber.

Asiamoney subscribers will receive full access to the following:

  • All the latest news, analysis and opinion at Asiamoney.com, Asiamoney WM (Wealth Management), and ACN (Asiamoney China) .
  • Breaking news alerts sent directly to your PC/mobile device.
  • Asiamoney’s Polls and Awards section.
  • Asiamoney’s extensive online archive
  • Asiamoney Week: our email service featuring the most widely read news and opinion pieces on Asia’s financial markets from our website over the previous seven days

If you would like to start your subscription, please contact our subscriptions team at (+852) 2842 6998.

If you are experiencing any problems with your access, please contact Customer Service by phone at (+852) 2842 6910 (Hong Kong), (+44) (0) 20 7779 8999 (UK), (+1) 212 224 3570 (US) or contact us by email at subscriptions@asiamoney.com.

Kind regards,

Asiamoney
http://www.asiamoney.com


Already have an account?

Subscriber Login


Forgotten your password?

Subscribe

Subscribers have unlimited access to all current and archive content. Start your subscription today - click on the button below.

Free trial

Taking a free trial will give you access to the current issue for two weeks (excluding selected articles, poll results and achives). Start your free trial today.

Related articles

  • China urged to restructure bad local government debt  29 Jul 2010
    Beijing needs to take responsibility for potential local government debts going bad, according to HSBC. The lender sees a bond-for-loans swap as the most realistic solution.

  • Opinion: JFE's Indian investment is an astute move  27 Jul 2010
    JFE Holdings announced today (July 27) it was buying a stake in India’s JSW Steel for US$1 billion. The move could prove to be a shrewd and astute investment by Japan’s second-largest steelmaker.

  • M&A activity offers ray of hope for Asia’s markets  26 Jul 2010
    There was a dispiriting slump in Asia ex-Japan’s equity and debt markets last week, with follow-on equity offerings almost half of the previous week’s. Nevertheless, regional M&A dealmaking has rallied 20% so far in 2010 year-on-year.

  • Rising credit risks unlikely to cripple Chinese banks  24 Jul 2010
    Analysts have been quick to dispel concerns about rising bad loans in China and are reassuring investors that the growing risks will not cripple the mainland’s banking industry.

  • Steel and coal demand in China to improve, says HSBC  24 Jul 2010
    The country's aluminium and steel producers are actively losing money in the sector due to policy clampdowns, escalating production costs, and continued economic slowdown. But HSBC believes demand for steel and coal will rise in the future. Karina Vachani reports.

Most read articles

  1. Jefferies grabs senior CLSA equities duo in Asia push

  2. Citi and Deutsche lead Asia's largest Cash Management Poll

  3. Opinion: How Henry Cai's move affects Deutsche and UBS

  4. CHINA - Tianjin plots financial re-launch

  5. Private banking industry showing signs of strain


All material is subject to strictly enforced copyright laws. © Euromoney Institutional Investor (Jersey) Ltd 2010.