On November 8, the China Securities Regulatory Commission (CSRC) announced to officially launch the work of expanding the pilot coverage of stock options and stock index options and said it would approve the launch of CSI 300 ETF option contract (with Huatai-PineBridge CSI 300 ETF as the underlying, and the code of 510300) on the Shanghai Stock Exchange (SSE) according to relevant procedures, in a bid to better satisfy the need of investors on risk management, give full play to the economic function of ETF options and propel the synchronously sound growth of futures and spots.
SSE 50 ETF option, the first ETF option in China, debuted on February 9, 2015. Over the past 5 years, its trade and operation have been on a normal track, with effective risk control measures, reasonable market pricing, rational participation of investors, steady growth of market size, and economic function gradually coming into play. It has become an essential part of the Chinese financial market.
Next, the SSE will, under the guidance of the CSRC, make full preparations to guarantee the smooth launch of the CSI 300 ETF option contract and its steady operation. Besides, the SSE will draw on merits from overseas and domestic markets to launch the stock option portfolio strategy business in the near future and optimize the exercise mechanism, so as to improve market efficiency and cut market cost.