CSI 300 ETF Option Successfully Listed on SZSE SZSE Takes Another Significant Step towards a World-Class Stock Exchange
Date: 2019-12-25
On 23 December 2019, SZSE reached its new milestone of reform and development. Its first derivative instrument – CSI 300 ETF Option (object of trading: Harvest CSI 300 ETF, code: 159919) was successfully listed for trading on SZSE, representing a major breakthrough in the product system building of SZSE. It marks the great progress made in the capital market to support Shenzhen in building a pilot demonstration area of socialism with Chinese characteristics. It marks the significant results achieved in the financial market development in the Guangdong-Hong Kong-Macao Greater Bay Area. It also marks another important step taken by SZSE to become a world-leading innovation capital formation center and a world-class stock exchange. Vice Chairman of CSRC Li Chao, Secretary of CPC Shenzhen Municipal Committee Wang Weizhong, Mayor of Shenzhen Chen Rugui and President & CEO of SZSE Wang Jianjun attended the listing ceremony and rang the bell for CSI 300 ETF Option together. Vice Chairman of CSRC Li Chao, Mayor of Shenzhen Chen Rugui and President & CEO of SZSE Wang Jianjun addressed the listing ceremony respectively. A total of about 150 officials and guests from the CPC Shenzhen Municipal Committee and Shenzhen Municipal People’s Government, Guangdong Provincial Financial Supervisory Bureau, the CSRC system, central and Shenzhen-based financial institutions, foreign exchanges, relevant marketing institutions, colleges and universities and news media attended the listing ceremony to witness this historic moment.
Li Chao said that, the launch of CSI 300 ETF Option by SZSE is an important measure for CSRC to implement the plans of the CPC Central Committee and the State Council and the sweeping reforms of the capital market. It is conductive to further upgrading the multi-tiered capital market product system, attracting more long-term capital into the market and expanding the opening up of the capital market. To develop the stock option market, it is necessary to better serve the real economy and fully leverage the positive role of stock options in risk management. It is necessary to maintain stable development and always put risk prevention in the first place. It is necessary to strengthen regulation and safeguard lawful rights and interests of investors. It is also necessary to widely publicize and guide investors to be rational in trading. Next, CSRC will strengthen communication with the CPC Shenzhen Municipal Committee and Shenzhen Municipal People’s Government, jointly promote capital market reforms, and support Shenzhen in building a pilot demonstration area of socialism with Chinese characteristics.
According to Chen Rugui, if Shenzhen wants to push forward its building of a pilot demonstration area at a high level and high quality, and better play its role of core engine in the Guangdong-Hong Kong-Macao Greater Bay Area, it should be equipped with international financial services, innovative financial products and diversified financial business. The official listing of CSI 300 ETF Option on SZSE is a significant step of CSRC and SZSE to support Shenzhen in building a pilot demonstration area, and is of great significance for Shenzhen to speed up its construction of a world-leading financial center. With the support and guidance of CSRC, Shenzhen will leverage the advantages of SZSE as a multi-tiered capital market platform, and strive to build itself into a world-class international finance center, venture capital center, innovation capital center and modern service center. Shenzhen will also provide strong financial support in the building of the pilot demonstration area and explore new and better reforms and innovations for China’s financial sector.
Wang Jianjun said that the listing of CSI 300 ETF Option is of great significance for SZSE to enhance its function as the “trinity” platform of direct financing, asset allocation and risk management, which adds new drives to the reform and development of SZSE. In line with Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, SZSE will stay true to its founding mission. It will deepen the supply-side structural reform of the financial sector and keep pursuing progress while ensuring stability as underlined in the fourth plenary session of the 19th CPC Central Committee and the Central Economic Work Conference. It will also adhere to the work requirements of “the four awes (stand in awe of the market, rule of law, professionalism and risks) and one joint force (The capital market’s development needs all the efforts made by all sides)”. Under the leadership of CSRC, SZSE will enhance its capacity to serve technological innovation and the real economy to strive to build itself into a world-class exchange matching with the pilot demonstration area.
Stock options first started trading in 1973, and have become a mature risk management instrument in the global capital market four decades later. As an important type of stock options, ETF option grows rapidly with ETFs, with its compound annual growth rate of global trading volume exceeding 25% since 2005. ETF option will work together with ETFs to propel the development of indexing investment.
CSI 300 ETF Option held steady on SZSE on the first trading day and kept smooth operation. Better linkage between futures and spot markets brings more rational investors. There are 72 CSI 300 ETF Option contracts officially listed and traded, with a total daily turnover of 140,100, the option premium turnover of CNY101 million, the closing face value of CNY5,758 million, and an open interest of 71,900.
