Stock-index Futures Hedging Transactions And Risk Management Strategies Of Xinhua Futures Company

From the time ,Although the stock index futures birth relatively late, as an important financial derivatives, it has the double gene of "futures" and "stock",which was widely welcomed at birth,develops rapidly, and gradually swepts world. It has a price discovery, hedging, resource allocation and other functions. It can effectively avoid the systemic risk of market's. China also just launch stock index futures. Although stock index futures market is still in its infancy, its characteristics with double gene and the special features will attract more and more investors to attend , especially institutional investors. It will improve the structure of China's capital market system, and benefit the opening and development of China's capital market and give full play to China's resource allocation function of capital market.The hedging and risk management of stock index futures will be one of the core elements to research and manage in the stock index futures market , and also is the hot spots ,which is research and discuss in the majority of experts and scholars.By argumentation of experts and scholars repeatedly and a lot of research literature show that only China's first options of stock index futures - the CSI 300 is the best benchmark. The "Exchange Management Regulations" which was launched in the March 2007, determines the CSI 300 which is the best of the first index futures contract. From now on, the institutional investors have good hedge products. The CSI 300 and the CSI 300 stock index futures are closely relate, influence and constraint each other. The CSI 300 stock index futures contracts base on the CSI 300, which is its necessary prerequisite. But the trend of CSI 300 index futures index contracts in turn affect the trend of the CSI 300.In today's global context of economic integration,China joined the WTO. The opening financial market will certainly be impacted by international capital market. The changing of domestic and international political and economic situation is bound to accelerate the risk of stock market volatility.The absence of risk hedging instruments make the stock of domestic institutional investors expose to the enormous portfolio risk. In this context, the CSI 300 stock index futures come to the fore, which is a necessary requirement to perfect capital market structure. Since then, institutional investors will be even more powerful, and their operation will be safer. The use of stock index futures hedging instruments can achieve an effective risk-averse objective and improve investment performance.So, doing a good research of stock index futures hedging and risk management strategy has great practical significance for institutional investors who base on future market conditions.This article based on the company's dimensions of Xinhua Futures Company to research stock index futures hedging strategies and risk management. The paper has four chapters:The first chapter is introduction, which briefly introduced the background of the paper , significance of topics, and organizational structure of the Xinhua Futures Company History, and the goals of business and develop ment; then describes the main content and research methods of this paper.The second Chapter analyses existing problems of CSI 300 stock index futures hedging ,briefly describes the concept of hedging, classification of hedging, and principles of hedging; followed briefly describes CSI 300 stock-index futures contract; finally analyses the current CSI 300 Index futures hedging.The third Chapter refers to stock index futures hedging transaction management strategies of Xinhua Futures Company, from the dimensions of Xinhua elaborating stock index futures hedging strategy and management, expounding guiding principles of Xinhua's stock index futures hedging transaction management; revealing the risk of Xinhua's future hedging trading; analysis of Xinhua's stock index hedging strategy; finally, describes the problems which should be pay attention to in the stock index futures trading.The fourth Chapter researchs Xinhua's risk management strategy for stock index futures, firstly, analyses source of risk for stock index futures; then, revealing the risk of stock-index futures trading of Xinhua futures company; then ,describes Xinhua's source control and prevention of risk management strategies; finally, illustrates Xinhua's risk management strategies about stock index futures trading, and so on.Finally, Conclusion, based on previous research and analysis, the main conclusions of this paper.