Publication

This paper examines whether the introduction of Chinese stock index futures has an impact on the volatility of national and regional spot markets, where prices are settled in cash on the spot at current market prices. In particular, the authors estimate the effects of the Chinese index futures market trading on the spot markets in mainland China, Singapore and Hong Kong. Their findings indicate that the introduction of Chinese index futures decrease spot market volatility in all three markets, but that the same cannot be said for the effect on the index futures markets in Hong Kong and Singapore.