Stay True to the Original Aspiration and Keep Moving Forward | CSI 500 ETF Options Lists on SSE
On September 19, 2022, the listing ceremony of CSI 500 ETF options was successfully held on the Shanghai Stock Exchange (SSE). At the listing ceremony, Pi Liuyi, Deputy Director and First-level Inspector of the Market Supervision Department I of the China Securities Regulatory Commission (CSRC), attended the meeting by video link. Liu Ti, SSE Executive Vice President, and Yang Xiaosong, General Manager of China Southern Asset Management Co., Ltd. (Southern Asset Management), jointly struck the opening gong for the market of CSI 500 ETF options. Dai Wengui, Deputy Chief Economist of China Securities Depository and Clearing Corporation (CSDC), and Yu Wenhong, Deputy General Manager of Southern Asset Management, unveiled the option contracts.
Liu Ti pointed out that CSI 500 ETF options are effectively complementary to the existing options product system on the SSE. While improving China's multi-tiered capital market system, the new product enhances the financial market’s ability to serve the real economy. Keeping in mind our position as among "top priorities of the country", the SSE will accurately grasp the new development stage, actively integrate into the construction of the new development pattern, and strive to build the SSE options market into a derivatives market with rich product system, complete trading mechanisms, diversified participants, and effective risk-prevention function, so as to realize its original aspiration and mission of "options make investment safer ".
Yang Xiaosong pointed out that ETF options are important financial derivatives. The launch of CSI 500 ETF options is a crucial measure to implement the comprehensive deepening of capital market reform and build a multi-tiered capital market system. As the first CSI 500 ETF in the market, China Southern CSI 500 ETF has become the largest and most liquid product in the same category of funds. In the future, Southern Asset Management will continue to attach great importance to the operation and management of funds, so as to provide strong support for the high-quality development of capital market and the transformation and upgrading of the real economy.
The intra-day steady trading of CSI 500 ETF options on its first day of listing met the expectation on the whole. There were a total of 72 officially traded contracts, involving call options and put options, 4 expiry months (October, November, December 2022 and March 2023) and 9 exercise price sequences. The total trading volume in the whole day reached 267,800, including 105,600 call options and 162,100 put options; the premium amount reached 229 million yuan, with the trading face value up to 15.53 billion yuan, and the total open interest up to 110,100. Overall, on the first listing day, CSI 500 ETF options were reasonably priced, with steady market operation, controllable risk and rational participation of investors.
In February 2015, China's first stock option product, SSE 50 ETF options, was listed on the SSE, marking the SSE as the first comprehensive exchange with stock spots and derivatives in China. In December 2019, the listing of CSI 300 ETF options further enriched the risk management tools of large cap blue chips. Over the past seven years, the scale of the SSE's options market has grown steadily and its economic functions have increasingly come into play. Today, the SSE's third exchange-traded stock option variety, CSI 500 ETF options, is listed and traded. Apart from further meeting the diversified risk management needs in the market, this injects new vitality into the SSE stock options market, which has been developing steadily for years. Next, under the leadership of the CSRC, the SSE will adhere to the general principle of pursuing progress while ensuring stability, implement the working concept of "four awes" (stand in awe of the market, the rule of law, professionalism, and risks) and "one joint force" (the capital market's development needs all the efforts made by all sides), and actively promote the steady enrichment of the option product system, the increasing improvement of the trading mechanism and the continuous optimization of investors' ideas, thus making a greater contribution to the high-quality development of capital market.