On November 8, CSRC announced the launch of pilot expansion of stock index option. The CSI 300 ETF option listed on SZSE will be approved according to procedures. Under the guidance of CSRC, SZSE will comprehensively start the pilot work of stock option to ensure smooth release of CSI 300 ETF option (subject matter of Harvest 300 ETF, 159919). The launch of SZSE-listed pilot stock option and diversifying futures and option varieties are important moves for the capital market to support building Shenzhen into a pilot demonstration area of socialism with Chinese characteristics and push forward comprehensive deepening of capital market reform. They are also the intrinsic requirements for further perfecting basic market rules, guiding medium and long-term fund flow into market, and improve internal market stability and financial services for real economy.
CSI 300 Index is a broad-base core Index tracking China's A-share market. The market value of its constituents is about RMB 30 trillion, accounting for about 60% of the market value of all A-shares. The assets following CSI 300 Index exceed RMB150 billion, showing strong market representativeness, wide coverage and great influence of the index. SZSE’ release of CSI 300 ETF option is an important step towards building an integrated exchange with well-established product system, functions and safe and efficient operation. This can help and SZSE and SSE investors to conduct hedging and risk hedging and enhance market pricing, liquidity and stability.
Market players have shown active cooperation and strong support for the stock option business drills started by SZSE since January 2015. More than four years of efforts have enabled SZSE to meet option trade conditions. So far, SZSE has completed the drafting of stock option business rules and the development of technical systems, with business, technology and the market all set. Today, market opinion solicitation was launched regarding main rules. In the next step, SZSE will organize network-wide testing, complete rule review, approval and issuance, carry out investor education activities, intensify communication with media and recruit market makers to ensure safe and steady operation of CSI 300 ETF option business.
Since the beginning of 2019, the Central Committee and State Council have issued the Outline of Guangdong-Hong Kong-Macao Greater Bay Area Development Plan and the Opinions on Supporting the Building of Shenzhen into the Pilot Demonstration Area of Socialism with Chinese Characteristics. This SZSE-listed pilot stock option is conducive to refining the financial market product system of the Greater Bay Area, shoring up weak spots in market risk management tools of SZSE, better meeting market risk management demand and establishing a one-stop platform that promotes the benign development of spot market and meets global asset allocation management demand. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and CSRC's unified leadership, centering the goal of building a standard, transparent, open, vibrant and resilient capital market and the fundamental task of serving high-quality economic development, SZSE will take the opportunity of unveiling CSI 300 ETF option business to strengthen basic rule formulation, enhance risk prevention and control capacities and market development confidence, stimulate new drivers of market innovation, serve the Greater Bay Area building the and endeavor to create a capital market ecosystem commensurate with the pilot demonstration area of socialism with Chinese characteristics.
