Chinese investors began applying on February 22 to open accounts for stock index futures trading.
Individuals will be required to have a minimum of 500,000 yuan ($73,200) to open an account, while initial margins will be set at 15-18 percent.
China is launching stock index futures, along with margin trading and short selling of stocks and other reforms, to deepen its financial markets with hedging tools. Index futures will give investors a mechanism to profit from declines in stock prices, allow them to hedge risks and help ease market fluctuations. |