www射-国产免费一级-欧美福利-亚洲成人福利-成人一区在线观看-亚州成人

USEUROPEAFRICAASIA 中文雙語Fran?ais
Business
Home / Business / View

Mature financial futures market needed

By Hong Liang | China Daily | Updated: 2013-02-04 07:55

In its fervent bid to realize its dream to be a world-class financial center, Shanghai has established a market for almost everything. But the various elements that are essential to the development of those markets are mostly absent. As a result, the markets are prevented from fulfilling their designed functions.

The 3-year-old index futures market is a case in point.

The market, opened in April 2010, is still limping along without making much of an impact on the stock market. The volume of trading in index futures is tiny compared to the size of the stock market. As such, it is seen to have little value for hedging by institutional investors.

In a move apparently to inject new life into the market, the authorities earlier said they would open the market to QFII investors, including some of the largest global financial institutions. But it remains doubtful if these big fish are willing to play in a market that is too illiquid to do much meaningful hedging.

As we all know, trading in financial futures is a zero-sum game. Hedgers alone don't make a market. There has to be enough counter trade from risk takers, or speculators, who take an opposite view to that of the investors who feel the need to hedge their holdings against a possible downturn.

But in Shanghai's financial circles, speculation is a dirty word. It conjures up images of shady people with lots of money plotting in basement offices to profiteer by cornering the supply of anything from property, coal, white wine, pork or garlic.

Many Chinese investors and commentators who have taken up the mantle of protector of investors' interests have expressed their concern that index futures trading could provide an effective tool, or an irresistible opportunity, for the stock market sharks to manipulate share prices for profit. In Hong Kong, which hosts an active market for financial futures, share prices often move irregularly on or around index futures settlement dates.

In a free and an open market, such irregularities can be expected to be quickly ironed out and equilibrium reestablished. Investors who are seeking to hedge their risks and speculators who are taking risk in the hope of big gains should be allowed free play in the market within the regulatory framework.

In Hong Kong and other financial centers, banks are the major players in the financial futures market which enables them to design many different derivatives products to suit the investment needs of their high-net-worth clients and funding needs of their corporate customers. Most of these derivatives products are tailor-made to fit the specific needs of individual clients. Some are packaged and sold in smaller lots to retail customers for investment purposes.

In times of uncertainty, many high-net-worth customers will ask their bankers to design for them derivatives products using index futures to lock in their gains instead of unloading their holdings, which could cause erratic price movements. For that reason, an active index futures market can help minimize the risk of a selling stampede by jittery investors when their confidence is sapped by a cloudy economic outlook.

We are sure that the architects of the Shanghai index futures market are well aware of its function. They need to take bold action to increase market liquidity so that it can realize its potential.

Allowing foreign participation in index futures trading is a positive step in the right direction. City financial authorities can go a step further by encouraging these institutions to offer index futures-based derivatives products to help investors to minimize potential risks through hedging, or maximize potential gains through leveraging.

That's what a futures market is for.

Most Viewed in 24 Hours
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
主站蜘蛛池模板: 亚洲一区二区三区四区在线 | 国产高清一区二区三区免费视频 | 黄在线观看在线播放720p | 中文一区在线 | 欧美14videosex性欧美成人 | 中文字幕第9页 | 久久久久免费精品视频 | 米奇777第四久久久99 | 99re思思 | 一级做α爱过程免费视频 | 成人a毛片视频免费看 | 亚洲va在线va天堂va四虎 | 日韩三级黄色片 | 欧美亚洲国产片在线观看 | 失禁h啪肉尿出来高h | 狠狠色狠狠色综合久久第一次 | 国产三级午夜理伦三级 | 美女视频黄a全部免费专区一 | 日本九六视频 | 色www永久免费 | 国产日产欧产精品精品推荐在线 | 久久人视频 | 性生大片一级毛片免费观看 | 日韩一区二区三区在线视频 | 亚洲综合资源 | 毛片在线视频观看 | 亚洲欧美日韩综合一区久久 | 国产精品91在线播放 | 亚洲成年男人的天堂网 | 91免费看片 | 日本亚州视频在线八a | 欧美成人免费大片888 | 日韩亚洲欧美一区 | 亚洲成a人片在线观 | 久久18| 一级做a爰片久久毛片欧美 一级做a爰片久久毛片人呢 | 日韩高清一区二区 | 久久99亚洲精品一区二区 | 免费人成年短视频在线观看网站 | 欧美精品日本一级特黄 | 日韩欧美一中字暮 |