Photo taken on December 23, 2019 shows the CSI 300 ETF options listing ceremony held in Shanghai Stock Exchange (SSE).
BEIJING, May 15 (Xinhua) -- China's securities regulator started on May 12 work related to listing of STAR 50 exchange-traded funds (ETF) options to enrich the capital market risk management vehicles, reported Xinhua Finance.
China Securities Regulatory Commission (CSRC) said the STAR 50 ETF options will be the first listed ETF option product that tracks the SSE Science and Technology Innovation Board 50 Index (STAR 50) whose constituents are 50 stocks with largest market capitalization and good liquidity listed on sci-tech innovation board or STAR Market.
Being a typical product to boost sci-tech innovation, the future listing of the STAR 50 ETF options is expected to attract more long-term capital to flow into the STAR Market and better satisfy the diversified trading and risk management demand.
ETF option, as a basic, mature and popular financial derivative on global capital market, plays a vital role in price discovery, risk management and balancing of the market long and short investment mechanisms.
Since February 2015 when China launched pilot stock options, seven ETF options have been listed on the Shanghai and Shenzhen bourses under guidance of the CSRC. These products functioned well in effectively channeling long-term funds into China's stock market and stabilizing the spot market.
An official with CSRC said that after listing of the STAR 50 ETF options, CSRC will further improve and optimize, pursuant to market conditions, the related risk prevention and control mechanisms to ensure stable operation of the product. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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