Stock Index Futures And Its Prospect In China Study

Stock index futures are financial innovation instruments that have developed quickly since 1980's. Its functions include price-discovering , hedging and asset-allocation. It can better the function and system of capital market. With the rapid developments in recent years of China's capital market, the demand for stock index futures get also great.Nowadays, the security companies-closed-end funds - open-end funds, social security funds and other institutional investors are growing at an unusually speed. At the same time, facing more obvious systematic risks, investors are paying more attention to the development of stock index futures which have been mature risk-management instruments in the international capital markets.The thesis is composed of five chapters. The first chapter describes the history of stock index futures and the new trends of development in the past few years, from which we can conclude that stock index futures have been the focuses of innovation and competition for capital markets all over the world. From the angle of attendants, the second chapter analyses the conceptions and roles of hedging> speculation and arbitrage. Considering the most fundamental and important function which is also the aim of use of stock index futures in china's stock market, the author lays stress on the principle and the theories of hedging. The third chapter introduces the research and results made by westen specialists on the effect of stock index futures market opon stock market. Although there have been disagreements, most of study results are helpful to clarify the unreasonable reproach and misunderstand for stock index futures trading increasing the stock market volatility. Chapter four expounds respectively and compares the supervisory systems of stock index futures market in America% Japan and HongKong, which is useful to China in the future. The last chapter discusses the prospects of stock index futures in China's stock market. In this chapter, the author interprets the important roles of stock index futures for China's capital market, analyses the possible negative effects brought about by stock index futures, and consider that the conditions are getting mature. Combining the international practices, this chapter raises my suggestions in the trading schemeN7contract designing as well as supervisory system of stock index futures in china.