The Research Of The Development Of Stock Index Future In China

As the latest product of financial future developments, the stock index future is a truly two-edge sword which would provide significant support for the health growth of securities, while bring setbacks, sometimes crisis, when the timing of its bringing to the market unreasonable. With rapid decline of Chinese Mainland stock market, more are strongly in favor of the introduction of index futures into the relatively newly-founded capital market, which, however, can not be sufficient evidence of good timing to give the market product of stock index future transactions. To have a clear guideline for whether such product should be introduced to market under now conditions requires a thorough understanding of the current capital market, the pre-circumstances under which the stock index futures may help the market and the question whether it can generate positive effect which we desire to.We shall discuss the market advantages and setbacks for the publishing of stock futures based on our view and understanding of recent Chinese capital market, and to reach the conclusion of whether to release such product by an analogous test of Hushen300 index.The 1^st section of this article shall give a brief introduction on latest studies of stock index futures and the usefulness of this product based on market condition analysis. Then we shall discuss the basic notion of futures and the circumstances which must be fulfilled if the tool is about to help the finance in the 2^nd part. The 3^rd and 4^th sector will give a relative thorough study of the current market conditions and to reach the conclusion as we have not reached the best timing to introduce index future transaction into the market through the analogous study of HuShen300 index. Finally, we shall give evidence of our view that the seemingly reasonable notion of affecting the market movement through the introducing of index future tools lacks even sufficient academic or practical ground, which, based on the analysis of foreign counterpart capital markets. Given all the discussion above, we shall in addition introduce the practical suggest for the financial tool and the market.