Preparations for the long-awaited stock index futures have been basically completed, a senior official from the China Securities Regulatory Commission (CSRC) said on Wednesday.

Fan Fuchun, vice president of the CSRC, was quoted by Xinhua in a speech to a financial forum in Shanghai. He said that after two years of comprehensive work, preparations on the index futures have finished. This is the first time that the securities regulator has confirmed the issue.

As early as in October 2006, the securities regulator launched mock trading for stock index futures in the mainland market. Meanwhile, management regulations as well as technical details for the trading have been released and improved.

The China Financial Futures Exchange, where the index futures will be traded, announced last month the ninth group of members, bringing the total number of brokers qualifying for index futures business to 84.

Earlier this year, the regulator said that preparations for the index futures were near completion and the real trading would be launched at the right time. There were also market rumors after the May 12 earthquake that the launch would be postponed for relief and reconstruction work.

The mainland stock market responded quickly to Fan's remarks as the whole financial sector, together with shareholders of futures brokers, surged notably in the afternoon session. Shanghai New Huangpu, a property firm with involvement in several futures companies, rocketed to the daily maximum gain of ten percent.

Inspired by the news, the benchmark Shanghai Composite index rallied in the afternoon to close at 3,459.03, up 83 points or 2.48 percent.

(Chinadaily.com.cn May 28, 2008)