The Mechanism Of Action Of Stock Index Futures In The Stock Market Bubbles And Stock Market Crashes

Stock index futures contract is a kind of financial futures,which is based on the stock index.As a kind of financial derivative instruments,stock index futures have the function of price discovery,risk aversion,arbitrage and reasonable asset allocation.In April 2010,the Shanghai and Shenzhen 300 stock index futures contracts began to be traded.It was launched by the China Financial Futures Exchange.Shanghai and Shenzhen 300 stock index futures increase the investment strategies of investors and help the finance development of China.In the past,the research of stock index futures is usually based on the traditional methods of econometrics,and so on.Different from previous studies,this paper used computational experimental finance to study the stock index futures.Computational experimental finance considers that the financial market is a complex adaptive system,which contains many heterogeneous subjects.Based on information technology and bottom-up micro modeling,it constructs the financial simulation market to simulate the real market operation.Then through the analysis of the results of the operation of the financial simulation market,we can find out the reasons,characteristics and properties of the financial markets.Different from the traditional financial theory,the method and theory of computational experiments are not required to be strictly based on the assumption of the premise.The study found that the stock index futures reduce the volatility of the stock market,reducing the stock market bubble and the collapse of the stock market.An appropriate increase in stock index futures investors,to a certain extent,stabilize the stock market.