Stock Index Futures And The Deepening Of China's Capital Market Development

In the past decade, from regional experiments to over- all spreading, our country made great achievements in the capital market with its size and standardization developing day by day. After entering the WTO our capital market may get new vitality in the course of further transformation according to the changing situation. The next decade will be a critical period for our capital market to come to its maturity. We will establish and develop the financial derivative instruments market by putting forward stock index future as the first step .which is needed for the capital market to develop steadily and is also required by its marketing feature and internationalization. Meanwhile there will inevitably emerge a group of stock-index-future investors as a result of the expanding of organization investors, Therefore it is urgent for us to pay attention to the study and discussion of the financial derivative instruments such as stock index future and its development.This paper tries to discuss and analyses the necessity of developing stock index future from the viewpoint of Marxist political economy and according to our country's reality. As to its development, here the author makes his productive suggestions.The first part of this paper introduces Carl Marx's ideals on capital and reviews the developing course of the capital market in our country. Here the author points out that it needs innovation in our capital market in order to keep it developing steadily.The second part analyses the reasons of the emerging and developing of the financial derivative instruments. It also analyses some problems in the development of our financial derivative instruments such as "the event of 327 national debt". And it discusses the practical significance of the financial derivative instrument market in the promotion of our capital market's development.The third part is the focal point of this paper. It systematically analyses the function of stock index future and the conditions for its development. The author makes some productive suggestions for developing stock index future at present and for making effective supervisions.