Research On The Risk Prevention And Regulation Of The Stock Index Future In China

The stock index futures is an effective risk management tool, possessing a strongrisk allocation function and function of price-discovery. However, because of adverseselection and moral hazard caused by the failure of the stock index futures market, andmarket monopoly, externalities, lack of investor confidence, along with stock indexfutures that has leverage, virtual and high-risk sexual characteristics, stock indexfutures come to be the culprit of all kinds of financial risk. But we should clearlyrecognize that this is not the fault of index futures themselves, the root causing risk ofoutbreaks is illegal operations resulted by relaxing their surveillance. Therefore,strengthening risk monitoring of the stock index futures market is of great significance.Stock index futures have been launched in China for four years, the stock marketappears drastic fluctuations, and meanwhile market risk is effectively amplified,causing huge losses to investors. At present, in China CSI300stock index futures isstill in the early stages of development, regulators, practitioners and investors are alsoin run-in period, regulators, investors and academics pay close attention to the healthof the stock index futures, as a result, the prevention of stock index futures risk thecurrent issue has become a hot issue in the study on the current securities and futures.In this paper, on the basis of summing up the related literature and research resultsat home and abroad, based on finance and banking combining with the development ofdomestic and international stock index futures, from the macro and micro level, theauthor comprehensive uses theory analysis and practice analysis, comparative analysisand empirical analysis methods, referencing to the experience and enlightenment aboutrisk control of foreign stock index futures at the same time, in consideration of themajor issues and realities of stock index futures in China, conducting a preliminarystudy and discussion with respect to risk prevention and regulatory measures of stockindex futures market in China.