Research On Rationalization Of Trader Structure In China Stock Index Futures

With nearly 30 years' development, stock index futures have been the most important part of international financial market and the most successful derivatives in the process of financial innovation as well, since KCBT offered the first stock index futures contract in 1982. Started with introduction of several key stock index futures among the world, I analyze the sample of Hu-Shen 300 security index future imitating contract, offered by China Financial Futures Exchange (CFFE). Based on which, I divide the investor into four types, and make analysis of the influence for them, which comes to a conclusion that, the planned Hu-Shen 300 stock index futures, is not suitable for small and middle sized investors, either theoretically or practically, though it could be a useful reference for investment. For the supervision, China should focus on overseas speculators, while allow the domestic ones in certain extent, what's vital is to develop institutional investors both overseas and domestic. Finally, proper trader structure should be built to improve China's financial futures and options market system.This essay includes four parts, which research the rationalization of traders' structure in China stock index futures from different angles:Chapter one and two introduce definition and types of stock index futures among the world, and analyze the conditions for China to develop stock index futures. With the introduction of the CFFE imitating contract sample and its rules, this essay concludes that China has already had the condition to launch stock index futures.The third and fourth parts, which are the highlights of this essay, divide China's stock index futures investors into four types, which are: overseas investors, overseas speculators, domestic investors and domestic speculators. In order to obtain the conclusion, these two parts use the methods of ADL calculation, transaction security analysis, and imitating transaction estimation to analyze the influence for all kinds of traders. Lastly, I make a conclusion that proper trader structure is the basis for China stock index futures to operate effectively and dynamic adjusting of the structure is the wise choice to develop our futures market.