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The Chinese are right to be cautious
24 February 2010
As China prepares for the launch of equity index futures, the authorities are taking a careful approach to reform, argues Dean Owen, chief China representative at futures broker Newedge.
Read more:
[China]
[derivatives]
[China Financial Futures Exchange]
[CSI 300]
[Dean Owen]
[Newedge]
[Citic Newedge]
[China Securities Regulatory Commission]
[CSRC]
The China Financial Futures Exchange (CFFEX) is on the verge of launching the widely anticipated futures on the CSI 300 index of leading Shanghai and Shenzhen stocks in the second quarter of this year.
According to a posting on the China Securities Regulatory Commission’s website on January 8, it may take three months to prepare for the launch.
Yet that belies the real time it has taken to develop this product. It was back in December 2001 that the then director of the CSRC’s futures division announced preparations were under way to launch an equity index future.
In January this year, more than eight years later, CFFEX was granted “in principle” approval by the State Council to launch its long-planned CSI 300 Index Futures. These have been trading in mock conditions at CFFEX since October 2006.
The exchange will also hold a pilot project in which a select...
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