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High barriers scare investors away from Chinese index futures


The Chinese media has reported that, as of Monday February 22, fewer than 100 accounts had been opened at the China Financial Futures Exchange for trading equity index futures. A source in the Chinese futures market told FOi that the actual figure was only 22.

The underwhelming market reaction may be due to high capital requirements and an onerous registration process.

Every retail investor is required to pay a Rmb500,000 ($73,239) deposit. Yet according to the China Securities Depository and Clearing Co, less than 3% of investors...

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