The China Financial Futures Exchange, the country's fourth futures bourse focusing on financial derivatives trade, will be established on Friday in eastern China's Shanghai City.
The China Financial Futures Exchange, with a registered capital of 500 million yuan (62.5 million U.S. dollars), is expected to start trade on mainland stock index futures soon.
China's two stock bourses including the Shanghai and Shenzhen Stock Exchange and three futures exchanges in Shanghai, Dalian and Zhengzhou constitute the China Financial Futures Exchange's principal five shareholders.
Zhu Yuchen, former general manager of the Dalian Futures Exchange, has been appointed as the general manager of the China Financial Futures Exchange by the China Securities Regulatory Commission.
China has not started trade on stock index futures, preventing domestic stock investors from being able to hedge risks against an index slump when buying or holding stocks.
(Xinhua News Agency September 8, 2006)
