The Study On Development And Risk-Avoidance Of Security Index Future In China's Security Market

China has been a member of WTO from the end of the year 2001. After that, whether the SIF will be developed or not and if so, how to develop it and how to keep the security of our capital market has been a focus of attention in finance industry.As an effective tool of risk-avoidance, SIF has been adopted by a lot of money market in different countries. It is very clear that SIF can stimulate the economy and control the financial risks effectively.In this paper, first, we introduce the fundamental theories on the SIF, including the basic definitions, characteristics and functions of it. Then we analyze the need and the possibility to develop it by combining the financial conditions and the material qualifications of our money market. After that, we give another research on the successful design of SIF contract. On the base of it, we design our own SIF contract with Chinese characteristics. Finally, taking an example of Hongkang financial safeguard, we emphasize on how to strengthen the control of finance, keep away the financial risks in China by using the theories of VAR analysis.