No timetable for China Securities Index futures

No timetable for China Securities Index futures
Last Updated(Beijing Time):2007-06-16


China is preparing to launch China Securities index(CSI) futures but has no timetable for the advent of the financial derivative, Tu Guangshao, deputy head of China Securities Regulatory Commission, said recently.

Preparatory work on the Securities index futures mainly include formulation of related laws and regulations.

The industry watchdog has set to build a long-term risk-control mechanism for futures companies and is ready to start risk training for retail investors.

Tu said the Chinese mainland will maintain its policy for supporting inland enterprises to go public in Hong Kong.

The stock markets on the mainland and in the special administrative region are complementary to one another in nature, and amid competition. Cooperation is the keynote for the relationship of the two, according to Tu. However, Tu added, it's hard to say whether the two stock exchanges will merge in the foreseeable future.

Tu noted it is normal for stock prices to be different on the mainland and Hong Kong bourses. The policies relating to QFII (qualified foreign institutional investor) and QDII (qualified domestic institutional investor) is conducive to balancing the two markets.