Shenzhen bourse introduces pilot for trading stock options

A man walks past an electronic board showing the benchmark Shanghai and Shenzhen stock indices, on a pedestrian overpass at the Pudong financial district in Shanghai, China, June 26, 2015. REUTERS/Aly Song

China’s Shenzhen Stock Exchange released rules for a pilot program to trade stock options, following similar moves by the Shanghai Stock Exchange four years ago.

Effective from the date of issue, the rules stipulate trading times, the types of stocks that qualify as well as requirements for investors, according to notices from the Shenzhen bourse published Saturday. The exchange also called on qualified market makers to apply for the program.

China started the trading of equity-linked options for the first time in 2015. Back then, the country initially offered contracts for an exchange-traded fund tracking some of the country’s largest companies before it promised to expand options to individual stocks on the Shanghai Stock Exchange.

Options trading is part of the nation’s effort to lure more sophisticated investors to a $6.9 trillion market where retail investors dominate and price swings have historically been among the world’s biggest.

Last month, China Securities Regulatory Commission said it will allow the Shanghai and Shenzhen bourses to offer CSI300 ETF options, and the China Financial Futures Exchange to offer CSI300 index options as part of efforts to expand the derivatives market.

Bloomberg

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

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Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.