TY - JOUR
T1 - What Makes a Successful Futures Contract? Case of China's Stock Index Futures
AU - Fung, Hung Gay
AU - Liu, Qingfeng “Wilson”
N1 - China's stock index futures contract, known as the Hushen 300 Index futures, was launched just over three years ago on April 16, 2010. It has developed into one of China's most successful futures contracts in terms of trading volume, despite the declining underlying stock market. This study investigates the root causes of its success.
PY - 2013
Y1 - 2013
N2 - China's stock index futures contract, known as the Hushen 300 Index futures, was launched just over three years ago on April 16, 2010. It has developed into one of China's most successful futures contracts in terms of trading volume, despite the declining underlying stock market. This study investigates the root causes of its success. The most important contributing factors are the difficulty in margin trading and short selling of the underlying stock market index, the continual loosening of regulations, and the improved futures contract's price-discovery functions. Although the spot market seems to have led the price-discovery process over the entire period, there have recently been significant improvements in the futures market's price-discovery functions and cross-market information flows.
AB - China's stock index futures contract, known as the Hushen 300 Index futures, was launched just over three years ago on April 16, 2010. It has developed into one of China's most successful futures contracts in terms of trading volume, despite the declining underlying stock market. This study investigates the root causes of its success. The most important contributing factors are the difficulty in margin trading and short selling of the underlying stock market index, the continual loosening of regulations, and the improved futures contract's price-discovery functions. Although the spot market seems to have led the price-discovery process over the entire period, there have recently been significant improvements in the futures market's price-discovery functions and cross-market information flows.
UR - https://www.tandfonline.com/doi/abs/10.2753/CES1097-1475460502
U2 - 10.2753/CES1097-1475460502
DO - 10.2753/CES1097-1475460502
M3 - Article
VL - 46
JO - The Chinese Economy
JF - The Chinese Economy
ER -