Stock Index Rose In A Single Season, 15.4% Stock Index Futures Are Not Bad Kids.

Ernst & Young reported that the Shanghai Composite Index rose 15.40% in the three quarter, leading the world's major markets. On the first trading day of the fourth quarter, the Shanghai Composite Index hit a new high and investor confidence rose.

　　 shares The performance of the spot market makes it impossible for people to re look at the financial futures market. Before the Shanghai and Shenzhen index rose again, because of too long hovering, stock market continued to voice the decline of stock market to the existence of stock index futures. Today, the Shanghai and Shenzhen 300 stock index futures are still running, but the spot market is rising steadily, making it difficult for the relevant queries to justify themselves. In fact, the rise and fall of the stock market is mainly related to the fundamentals, and it has little to do with stock index futures. Stock index futures are not really "bad kids".

　　 The Shanghai and Shenzhen 300 index has become the fourth largest in the world. Stock market index Futures products

Contrary to people's misunderstanding of stock index futures, stock index futures are playing their unique role.

Since its listing in April 16, 2010, the Shanghai and Shenzhen 300 stock index futures market has been active. Up to now, the total turnover has reached 529 million hands, with a total turnover of 391 trillion and 500 billion yuan, with an average turnover of 487 thousand and 900 hands, with an average daily turnover of 360 billion 600 million yuan. Judging from the volume of spanactions of a single product, the Shanghai and Shenzhen 300 index has become the world's fourth largest stock index futures.

At the same time, the operation quality of Shanghai and Shenzhen 300 index futures has been improving and the maturity has been gradually improved. Since listing, Shanghai and Shenzhen 300 stock index futures and spot prices are highly fitted, price correlation is as high as 99.9%, and yield correlation has reached 94.5%. The contract price of the delivery day always fluctuated slightly around the settlement price, and the trend was stable. There was no speculation about the delivery contract.

It is noteworthy that, with the gradual deepening of functions, stock index futures have a positive effect on the stock market: improving the stability of the stock market and reducing the volatility of the stock market. Before and after the listing of stock index futures, the volatility of Shanghai and Shenzhen 300 index decreased by 40%, and the number of days of rise and fall of more than 2% decreased by 59% and 59% respectively. The extreme value range of stock market volatility has been greatly reduced. The largest single and daily rise and fall of the Shanghai and Shenzhen 300 index in the four years before and after the listing decreased by 45.96% and 31.73% respectively.

At the same time, stock index futures can effectively enhance the core competitiveness of the stock market, attracting and promoting long-term entry of various institutions into the market. As of October 17, 2014, 91 securities companies, 93 fund companies, 8 trust companies, 30 QFII (qualified overseas institutional investors), 33 Futures Company, 113 private equity fund companies and 8 insurance companies have opened accounts. This has encouraged and nurtured the concept of mature investment, facilitating the shift of retail ownership to institutional dominance, and facilitating the spanformation of short-term speculation into long-term value investment. Through the comparison of stock index futures before and after listing, the average daily turnover of stocks in Shanghai and Shenzhen 300 fell from 1.89% to 0.52%, a drop of 72.49%.

Haitong Securities chief economist Li Xunlei said that stock index futures are increasingly widely used in risk management of all kinds of investors, speeding up institutional innovation and business innovation. Securities companies, Futures Company and some private equity funds use stock index futures hedging methods, and are designed based on capital preservation. Interest arbitrage Liquidity management and absolute revenue strategy for financial products. According to incomplete statistics, from April 16, 2010 to April 16, 2014, the average annual yield of 1768 brokerages and information management products was 4.7%, of which 217 of the stock index futures reached an average annual yield of 9.44%. A large number of small and medium-sized investors have indirectly participated in and share institutional innovation dividends brought by stock index futures through institutions.

　　 The strength of financial derivatives Market competitiveness

"As a new investment variety, stock index futures are still young, it is impossible for all investors to understand, but we must sober up. Stock index futures and other financial derivatives are important components of the capital market. The scale and strength of financial derivatives determine the ultimate competitiveness of China's capital market." Tung sin futures senior consultant Fang Shisheng said.

Beijing Technology and Business University professor Hu Yuyue analysis, futures is the basic derivative, is the basic raw material for financial products innovation. With financial futures and other market supporting tools, market organizations can make use of financial futures and other tools to decompose portfolios such as stocks, bonds and other traditional investment portfolios according to their risk tolerance capabilities, so that the characteristics of product returns and risks are compatible with the customers' income expectations and risks and provide customers with complete personalized financial services. Without such products, the development of the capital market is extremely disadvantageous.

In several major capital markets around the world, stock index futures have been questioned or criticized in varying degrees. But as time goes on, people's understanding of the economic function of stock index futures deepens, and stock index futures rapidly grow into the cornerstone of the modern financial derivatives market. In a number of overseas financial crises, stock index futures have also demonstrated their skills many times, providing many investors with "escape capsule" and becoming the most dependent tool for investors to avoid systemic risk.

China's financial derivatives are not too much, but too little. China's financial futures exchange has been established for more than four years. At present, there are only two products of Shanghai and Shenzhen 300 index futures and 5 year treasury bond futures. Foreign mature stock index options, exchange rates, interest rates and other financial derivatives are still blank.

Zhang Shenfeng, chairman of CICC, said that at present, China has become the world's second largest economy and the largest trading nation, and has accumulated huge social wealth. By the end of the two quarter of this year, the total assets of the financial industry exceeded 192 trillion yuan and the bank deposits were 113 trillion and 600 billion yuan. At the same time, with the deepening of the major financial reforms such as interest rate liberalization and RMB internationalization, the demand for economic and financial risk management is very urgent. It is urgent to accelerate the development of the financial futures market and provide a complete, safe and efficient financial risk management platform.

Tang Ke, vice president of the Han Qing Research Institute of Renmin University of China, also believes that Chinese investors should get out of the misunderstanding of financial derivatives and make good use of these hedging tools.