Comment On The First Listing Of Stock Index Options Will Promote The New Development Of Capital Market

Liu Ying, researcher of Chongyang Finance Research Institute, Renmin University of China

Recently, Shanghai and Shenzhen 300 stock index options have been listed in CICC. Shanghai and Shenzhen 300ETF options are listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange. Listed on the first day of active trading, trading volume. Shanghai and Shenzhen 300 stock index options become the first stock index options in China. The two Shanghai and Shenzhen 300ETF options provide more options for the Shanghai stock exchange investors, and fill the gap of the options products of the Shenzhen Stock Exchange.

This not only made up the short board of China's capital market construction, enriched the varieties of China's financial derivatives, strengthened the structural reform of China's financial supply side, but also prevented risks, expanded the opening of the capital market to the outside world, secured the fence of the system, and also attracted foreign investment and optimized the structure of investors. It has opened a new journey, created new opportunities, opened up new prospects, and will have a far-reaching impact on the development of China's multi-level capital market, for the purpose of preventing and controlling risks, finding prices and hedging.

The Shanghai Stock Exchange and Shenzhen Stock Exchange launched the options contract with the target of Shanghai and Shenzhen 300ETF, of which the Shanghai Stock Exchange's push option is Huatai Barry Shanghai and Shenzhen 300ETF, and the Shenzhen stock exchange is cashmere Shanghai and Shenzhen 300ETF. The CSI 300 option quoted by CICC is the CSI 300 index. They are all options built on the basis of Shanghai and Shenzhen 300 index. The Shanghai and Shenzhen 300 index is composed of 300 stocks with the largest scale, liquidity and industrial representation in China's A shares. The number and market value of these 300 stocks account for 8% and 60% of A shares respectively, and profits and Dividends account for 76% and 77% of the shares respectively. Therefore, the Shanghai and Shenzhen 300 basically covers the main body of various industries in China, especially the trend is basically consistent with the overall trend of China's A shares, which can comprehensively reflect the overall performance of China's A share market.

The launch of the three option products at the same time will help to enhance the pricing power of China's capital market, enhance liquidity and stability of the market, help to better meet the risk prevention and control risks of investors, find prices and hedge demand, so that investors can hedge risks in the stock market's rise and fall, locking bilateral gains. The three option product is launched at the same time to reduce the risk of cross market arbitrage under the premise of ensuring market liquidity.

This enriches asset management and risk management tools, and optimizes the structure of investors to attract more long-term capital, including foreign investment. The Shanghai and Shenzhen 300 options and Shanghai and Shenzhen 300ETF options can lead the launch of series options products, further enrich our financial derivatives such as options and futures, accelerate the R & D of financial derivatives related to institutional investors, better prevent and control risks and strengthen asset management, and optimize resource allocation.

In less than five years, the Shanghai 50ETF has grown into a major ETF product in the world. Especially since this year, the demand for stock index futures has been growing rapidly, and volume and position have increased repeatedly.

In 2019, 19 new products were listed in China, the fastest growing year. By the end of the year, China's futures and options products will develop to 75, futures exchanges will reach five, and more than 20 Futures Company will set up branches overseas. With the promulgation and implementation of the futures law, more futures options will be launched and hundreds of futures options will be available.

At present, China's financial market has initially developed and formed a basic pattern including futures options, commodity finance, internal and external fields, and coordinated development within and outside the country. The introduction of Shanghai and Shenzhen 300 options and Shanghai and Shenzhen 300ETF options has enriched our futures options products, helping to fill the short board of the capital market, especially the short board to prevent and control risks. With more investors and institutions participating in the Shanghai and Shenzhen 300 options market, the development of products such as Shanghai and Shenzhen 300 options will also reduce the volatility of the market, enhance the liquidity and stability of China's capital market, promote the construction of our multi-level capital market and long-term, stable and healthy development, and strengthen our confidence in building a standardized, transparent, open, dynamic and resilient capital market.

With the acceleration of opening up to the outside world, the introduction of Shanghai and Shenzhen 300 option products can make up for the shortcomings of the relevant system design, stick to the fence of China's capital market, and better prevent and control risks.

Next year, China will enter a well-off society in an all-round way. It can be expected that the per capita GDP will exceed 10 thousand dollars. With the realization of the first centenary goal of our country, it will be particularly urgent to develop our capital market, strengthen asset management and realize the preservation and increment of wealth. When China's population aging is becoming more and more serious, developing and expanding the capital market is not only the only way to develop direct financing and support the high quality development of our economy, but also to protect and realize the important system construction that people yearn for a better life.