For investors who regard China as a bubble fit to burst, yesterday's debut of stock index futures was a long time coming.
A select group of larger mainland Chinese investors were allowed to put their money where their mouth is, and short market sectors using futures. The chosen few had to take a ‘driving test' before gaining permission, and put down margin and cash deposits before starting. At the moment, foreign investors cannot take part - but this will likely change over time. Chinese stocks' 80% climb last year have convinced many of them the only way for the stocks, in the short term at least, is down. Not since the mid-1990s have investors been able to short mainland Chinese markets directly ...
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