Ruirong Huo, General Manager of CFFE: Promote the high-quality development of the financial futures market with the spirit of reform
On December 5th, Ruirong Huo, general manager of China Financial Futures Exchange, made a speech at the roundtable exchange session of the 17th China (Shenzhen) International Futures Conference. Ruirong Huo said that the Sixth Plenary Session of the 19th Central Committee of the Communist Party of China put forward new and higher requirements for the high-quality development of the capital market, which pointed out the direction for the development of the futures market, especially the financial futures market.
CFFE will conscientiously implement the decisions and deployments of the Party Central Committee and the State Council, and under the strong leadership of the Party Committee of the China Securities Regulatory Commission, promote the high-quality development of the financial futures market with the spirit of reform.
According to Ruirong Huo, as of now, CFFE has listed 3 stock index futures, 3 treasury bond futures, and 1 stock index options. The overall operation is safe and stable, the quality of operation continues to improve, and the economic function is increasingly emerging.
In terms of stock index futures, market positions have steadily increased, and the degree of institutionalization has been further improved. In the first three quarters of this year, the stock index futures market had an average daily turnover of approximately 290,000 lots, an average daily holding of 540,000 lots, and an average daily trading holding ratio of 0.53.
Institutional investors accounted for more than 50% of transactions, and holdings accounted for nearly 70%.
Regarding treasury bond futures, market pricing efficiency continued to maintain a high level, and the effectiveness of serving the real economy continued to increase. In the first three quarters of this year, the average daily turnover of treasury bond futures was nearly 100,000 lots, and the average daily holdings were 230,000 lots; the annual turnover and holding ratio of treasury bond futures remained at a reasonable level of about 0.5.
The price correlation coefficients of various types of treasury bond futures and corresponding cash bonds continued to remain above 99%, and the futures and currents were well-fitted and the basis was reasonably stable. At present, the proportion of institutional holdings of treasury bond futures is close to 90%, which is the futures product with the highest proportion of institutional holdings in China.
The hedging function of stock index options is gradually brought into play to improve and optimize the market ecology. In the first three quarters of this year, the average daily trading volume of CSI 300 stock index options was nearly 130,000 lots, and the trading volume of royalties was approximately 1.1 billion yuan.
Both the transaction holding ratio and the forward-to-spot transaction ratio are operating within a reasonable range, and the institutional transactions and holding positions account for about 60%, and the purpose of holding positions is more diversified. Among them, the hedging function holdings accounted for 20%, corresponding to an average daily insured spot market value of about 25 billion yuan, which played a positive role in maintaining the stable operation of spot stock market.