On September 2, CSRC announced the initiation of the listing work of new types of ETF options and in principle approved SZSE to launch ChiNext Board ETF Option and CSI 500 ETF Option. Promoting the listing of new option types is an important measure of SZSE to put in place the requirement of deepening the reform of the capital market in all respects, build a quality innovation capital center and world-class exchange, and better serve the construction of the Guangdong-Hong Kong-Macao Greater Bay Area and the Shenzhen Pilot Demonstration Area. It can help further enrich capital market risk management instruments, meet investors’ diversified investment transactions and risk management needs, attract long-term funds to the market and improve market vitality and resilience, thus facilitating the stable and healthy development of the capital market.
The listing of ChiNext Board ETF Option and the CSI 500 ETF Option will end the history of zero single-market ETF option on Shenzhen market. Meanwhile, an ETF options product system covering innovation and growth companies, enterprises with medium and small capitalization, and large-cap and blue-chip stocks will be formed. As a result, the function and role of options will be brought into play in a greater scope. The corresponding indexes to the ChiNext Board ETF Option and the CSI 500 ETF Option are ChiNext Index and CSI 500 Index. The constituent stocks of the ChiNext Index are stocks of 100 high-tech companies, companies from strategic emerging industries and innovation-oriented startups with growth potential on the ChiNext Board that have large market capitalization and excellent liquidity, reflecting the market characteristics of the ChiNext Board of “excellent innovation and high growth”. The constituent stocks of the CSI 500 Index comprise the top 500 stocks by market capitalization after removing the constituent stocks of the CSI 300 Index and the top 300 stocks by market capitalization from A-share stocks, reflecting the market performance of A-share companies with medium and small market capitalization.
Next, SZSE will, according to CSRC’s plan, work with relevant parties of the market to make adequate business and technical preparations to ensure the successful launch and steady operation the two ETF options, paving the way for a successful 20th National Party Congress.
