Source: CCTV.com

04-09-2007 14:43

Although the technical system is already in place, experts say China's long-anticipated Stock Index Futures is unlikely to be officially launched any time soon. They say regulators are still seeking opinions on related rules. But in the mean time, the government has released a general regulation for the trade of Index Futures.

The Regulation on the Trading of Futures released by the State Council is due to take effect on April 15, paving the way for the launch of the stock index futures.

The regulation rules that funds mainly invested in stocks can also buy index futures. However, all of the index futures combined should not hold more than 10 percent of the fund's total net value by the end of a day. Meanwhile, the total trading value within one day should be no more than 100 percent of its net value.

Hu Lifeng, chief fund analyst of Galaxy Securities Corp. said:"The rules on fund investing in index futures are strict. The government does not encourage such investment."

However, sources say that four related rules, which are supposed to cover more details for futures trading, are yet to be finalized. So it is unlikely the system will be launched within the next few months.

China had more than 17 million fund investors by the end of last year. Gross profit of the fund market reached 270 billion yuan, an increase of 38 times over 2005.

Research shows that 30 percent of the interviewees believe funds are the most proper investment at present. As small investors find it hard to survive the stock market by themselves, fund companies now make up nearly one third of the stock market investments.

Editor:Li Yang