The China Financial Futures Exchange has told futures brokerages to limit the number of transactions customers can make in CSI 300 Index Futures, which have become wildly popular since their launch on April 16.
The contract tracks the CSI 300 Index of leading stocks listed on the Shanghai and Shenzhen stock exchanges, and is China’s only listed financial derivative.
Regulators were extremely wary about allowing trading of the product to begin, for fear that it could destabilise financial markets. Since launch, they have been concerned by the apparently unstoppable rise in trading volume. The authorities are worried that the trading activity is excessively speculative, and may be contributing to China’s...