Demand for the new Chinese equity index future has continued to build after its strong launch on Friday April 16.
The contract, the first listed financial derivative in China for more than a decade, tracks the 300 leading ‘A’ shares on the Shanghai and Shenzhen markets, weighted by freefloat.
Some 58,500 CSI 300 Futures were traded at the China Financial Futures Exchange on the first day. Volume rose to 124,000 on Monday and 153,000 on Tuesday. On Wednesday there were 121,000 trades and on Thursday 140,000.
This is a very strong start for a contract that some had feared would not catch on because of the high barriers to entry deliberately imposed by the Chinese regulators, for fear of rampant speculation.
Each contract is worth Rmb300 times...