China further relaxes rules for index futures trading
* Foreign investors step up China investments, want more
* Margin ratio for small cap index futures to be lowered to
* Intraday trading activity limits to be raised, fees
(Adds more details, background)
SHANGHAI, April 19 (Reuters) - China's financial futures
exchange said on Friday it was further relaxing index futures
trading rules，reducing margin requirements，cutting fees and
allowing more trading activities.
The China Financial Futures Exchange said in a statement the
rule change, which will take effect on April 22, is aimed at
meeting investors' risk-hedging needs and will help introduce
more long-term capital into the market.
The margin ratio for small cap CSI500 index futures
would be lowered to 12 percent from 15 percent.
Intraday activity exceeding 500 lots on a single index
futures contract would be considered excessive, according to the
new guidelines, as opposed to 50 lots previously.
In addition, transaction fees for closing intraday positions
will be lowered.
China's stock market has seen a surge of inflows from
foreign investors, who have been pressing Beijing to provide
more hedging tools and foster a more liquid derivatives market.
China tightened index futures trading rules during the 2015
crash but has been gradually relaxing rules over the past two
(Reporting by Samuel Shen and Andrew Galbraith
Editing by Jacqueline Wong)
First Published: 2019-04-19 11:30:29
Updated 2019-04-19 12:03:27
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