China is planning to launch index futures based on the CSI 300 Index next March. This contract may facilitate the access of international and retail investors to the chinese stock market:
"China’s securities regulator may introduce futures contracts on the country’s stock indexes as early as March, an official said. The first contract, based on China’s CSI 300 Index, may begin trading after the Communist party’s annual congress in March.
Index futures would give investors in China a mechanism to profit from declines in prices for the first time, allowing them to hedge risks. That may help ease fluctuations in a market in which the stock benchmark almost doubled in 2007, slumped 65 percent in 2008 and rebounded 80 percent last year.
Singapore Exchange Ltd. started trading stock index futures based on the FTSE Xinhua China A50 Index, which tracks Class A shares of China’s 50 biggest companies, in 2006. The value of the contracts advanced 84 percent last year.
The value of the futures contracts will be points of the CSI 300 multiplied by 300 yuan, according to the trading rules the exchange set. At today’s closing level of 3535.23, an investor would have to put up 106,000 yuan to buy a contract valued at 1.06 million yuan." in Bloomberg
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