China Takes More Measures To Halt Stock Futures Speculation
The China Financial Futures Exchange (CFFE) announced a series of measures to curb speculation of stock index futures Wednesday.
The CFFE said it will raise margin requirements on stock index futures from 30 to 40% of the contract value.
The upper transaction limit on a single product will be reduced to 1,000 shares per day for each participant.
For participants s who buy a product and sell it on the same trading day, the CFFE will charge a transaction fee of 0.23% of the contract value, up from the current 0.0115%.
The CFFE warned participants to learn regulations carefully before de facto transactions and asked each of them to make a written promise that they will abide by the rules.
The measures will take effect beginning on 7 September.
Chinese authorities have detained or arrested over 200 people, including a journalist, an official of China’s securities watchdog and 4 senior executives of China’s major securities dealer for stock market violations.
Wang Xiaolu, journalist of Caijing Magazine, has been placed under “criminal compulsory measures” for suspected violations of colluding with others and fabricating and spreading fake information on securities and futures market, LTN learned Sunday.
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HeffX-LTN
Paul Ebeling
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