Chinese exchanges in joint benchmark

Chinese exchanges in joint benchmark

In China, the Shanghai and Shenzhen stock exchanges will launch a joint benchmark index of China’s top 300 companies on April 8.

This would make possible a future offering of trading in index futures. Such a move is said to be “impractical” in the near future but a possibility later on.

The launch of the joint index is also said to indicate a possible future merger of the two exchanges.

The Chinese equity markets have been having a hard time recently due to concerns about the government’s dominating ownership (two-thirds of shares) in the listed companies.

The Shanghai composite index hit a six-year low last month over fears that the worth of investors’ holdings would drop if there was a rapid sale of state shares.

Commodities futures have been very successful in China, but the trading of other sorts of futures has not yet been approved by the government there.


Comments (0)

Trackback URL | Comments RSS Feed

There are no comments yet. Why not be the first to speak your mind.

Comments are closed.