The Study On Risk Management Of China Stock Index Futures

Stock index future is one of the most successful products in the financial derivative market,which is traded in many countries.Among the top 20 biggest economies,mainland China is the only one that doesn't have stock index future market.The characteristics and function implies that it is critical to the development of stock market,price discovering mechanism and providing risk hedging tools for the stock market investors.To build the stock index future market is very important to consummate China's financial system.But it is also a two-edge sword,if not properly used it may cause disasters.How to manage the risks associated with the new financial product in China is urgent and we should make a good preparation for that.This dissertation first discusses the causes of stock index futures risk and its characteristics and summarizes the possible risks in China.On the basis of analyzing the lessons learned from the events caused by stock index futures,it is suggested that the risk be divided into systematic risk and non-systematic risk and be managed separately.As to the micro level risk,after introducing foreign stock index risk management experience and combining it with our country's reality,the risk facing domestic investors is simulated.As to the macro and medium level risk management, this dissertation,on the basis of studying systematic risk management experience in the markets of developed countries,we propose the suggestions on how to manage the macro-level stock index futures risks using three-level risk regulating model.