BEIJING – China may launch share index and treasury bond futures to make it easier for investors to hedge risk, state media reported.
The go-ahead for financial derivatives will depend on how well the market develops for existing futures in a limited range of commodities, Xinhua news agency said, citing the China Securities Regulatory Commission (CSRC).
Xinhua did not provide a timetable for when the government might allow the financial futures to be traded.
While the CSRC is warming to the idea of futures, it plans to keep tight controls on the industry, vowing to improve supervision, according to Xinhua.
Commodity futures were first introduced in the 1990s, but frantic speculation caused them to be banned again within months.
Now, China is again warming to the risk-hedging instrument and has introduced oil, cotton and corn futures within the past year.
The rethink of the entire futures concept has come about as the need to protect key industries from price fluctuations has become ever more urgent against the backdrop of China’s expanding market economy.
Transactions on the country’s futures markets have totaled 1.47 bln yuan since the beginning of the year, an increase of 36 pct over the same period in 2004.