Index futures tweaked to curb trading risks
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"We will further improve the rules based on feedback we receive from the public," he said. "The final rules will be released after the revised version is reviewed by the board of CFFEX shareholders and approved by the top securities regulator."
The revised rules also seek to force investors to cut holdings when futures' prices consecutively hit the daily trading limit.
Trading contracts for index futures are based on the CSI 300 Index, which is composed of the 300 largest A shares listed on Shanghai and Shenzhen stock exchanges.
Each point is worth 300 yuan and the minimum trading unit is 0.2 point. The daily trading limit is 10 percent above or below the previous day's settlement price.
CFFEX released draft regulations for investors last week that require individual investors to have at least 500,000 yuan to open an account.
Investors must also have passed relevant examinations on futures trading, participated in mock trading for at least 10 days and conducted at least 20 transactions.
China Securities Regulatory Commission, the nation's securities watchdog, announced the planned launch of index futures earlier this month and formal trading is expected to start at CFFEX in April.
Market observers say the launch of index futures will have a limited impact on the stock market in the mid to long term, but the short-term impact remains to be seen.
Shares on the Shanghai exchange ended slightly higher yesterday with the benchmark Shanghai Composite Index rising 0.3 percent to 3246.87 points. The Shenzhen Component Index fell 0.08 percent to close at 13,350.67 points.
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