China has entered the exciting world of stock index futures trading. The country's government is now allowing investors to apply for stock index futures accounts. For the China Financial Futures Exchange, this is the first step in the country's long-waited launch of stock index futures trading.
The financial hurdles are somewhat steep, however. Individual traders will need to have an account size of just over $73,000 (500,000 yuan) to be considered for permission. Initial margin also is on the conservative side -- about 15%-18%.
Despite the limitations, however, the sheer size of the potential Chinese trade means the new allowances could ultimately inject significantly liquidity into the world market.
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