China Stock Index Futures Impact Studies, The Institutional Investors' Behavior

The stock index future will be introduced to our securities market in a near future. This is an epoch-making significant affair to our capital market. This derivative will bring about far-reaching impact on investors, especially institutional investors. Logically the truly impact of the introduction of the stock index future is because of the change of the behavior of institutional investors.To be the main investors of capital market, the behavior of institutional investors is rational which is without doubt. Investor's behavior is to choose a way which can make maximum benefits based on the balance of risk and return. In actual market, investors are more or less restricted, such as the factors that belong to investors themselves or the market mechanism factors both have impact on investor's behavior. Different institutional constraints will lead to different rational behaviors.This passage which is based on stock index futures takes the short-sale mechanism into consideration. We analyze the rational choice which will maximize the benefits under the market which prohibits short-sales. The conclusion is: without short-sales alienation acts are rational choice to the institutional investors. The stock index futures will provide short-sale mechanism to the market. Market constraints change, so the behavior will change logically. With the short-sale mechanism, what is the rational choice of institutional investors? The writer analyzed the behaviors which the institutional investors maybe choose, which mainly conclude hedging, arbitrage, speculate, and risk management. And we have used market data to analyze.