Beverly Hills 1/9/2010 1:15:57 AM
News / Business

China Approves Stock Futures Launch

Finance World News Update by EQUITIES Magazine

China’s State Council has, for the most part, approved the launch of stock index futures as well as a trial program for short selling and margin trading of stocks. The approvals are part of the steps China is taking to develop its capital markets.

 

Although no date was set for the launch of index futures, the China Securities Regulatory Commission said it is expected to take roughly three months for launch preparations to be completed.

 

For regulators, endorsement of stock index futures by the State Council, China's highest administrative body, provides important political cover.

 

In the past, China has refrained from doing so because of the potentially risky financial derivative, allowing investors to bet against the stock market.

 

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