There was no official announcement, because it hasn’t happened officially, but China just killed the biggest stock index futures market in the world.
After the government started investigating short positions, raised margin requirements, and tightened position limits, volume in the country’s two stock index futures markets plunged around 99%, Bloomberg’s Kyoungwha Kim reports.
So it’s basically gone.
Back in July, the World Federation of Exchanges ranked China’s two futures markets — CSI 300 Index and CSI 500 Index — the most active in the world. These markets were key to investors because they allowed day trading. That made them ideal for investors looking to hedge positions in choppy markets.
China’s stock markets crashed twice this summer, first on June 12th and then again on August 17th. Since then, the Shanghai Composite, the larger of the country’s two markets, has returned almost all of its gains for the year.
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