“Introduce various ETF options products covering broad-based ETFs, cross-border ETFs, industry and thematic ETFs, gold ETFs, etc., to enrich the product layout; to study the launch of option products based on overseas stocks or indexes, and to increase overseas investment risk management tools; Introducing individual stock options to provide more refined risk management tools.” On December 5, at the 17th China (Shenzhen) International Futures Conference in 2021, Liu Ti, deputy general manager of the Shanghai Stock Exchange (hereinafter referred to as the “Shanghai Stock Exchange”) Express.
Liu Ti pointed out that in recent years, as China’s capital market continues to open up to the outside world, the issue of China’s pricing power has gradually become an important focus of the derivatives market. . From the perspective of the stock options market, to improve China’s pricing influence, it is necessary to further exert the functions and roles of option products. Only when the functions are better played, the market can develop better and grow stronger, and only then can China’s pricing influence be improved.
Liu Ti said that my country’s first stock option was born in 2015, and the pilot program of stock options will be expanded in 2019. The economic function of stock options has been initially brought into play, which has given rise to related spot markets. positive influence.
First, the insurance function is brought into play to reduce the selling pressure on the spot.
Liu Ti introduced that since the launch of stock options on the Shanghai Stock Exchange, the average daily insured market value has gradually increased. Since the beginning of this year, the average daily insured market value has been 31.77 billion yuan, which is higher than the initial period of listing. Of 1.41 billion yuan has increased 21 times. Especially when the market fluctuates significantly due to the new crown epidemic and international factors, the trading volume and open interest of ETF options have increased significantly. Selling pressure.
The second is to promote price discovery and reduce market volatility.
Liu Ti said that after the launch of options, the average discount and premium rate of SSE 50ETF and CSI 300 ETF has dropped significantly, and the pricing efficiency has improved significantly; the daily excess of SSE 50ETF and CSI 300 ETF Volatility decreased significantly after the options were listed, and the volatility was narrower than the market benchmark. “It can be seen that the introduction of options has a positive effect on improving the pricing efficiency of the underlying securities and stabilizing the volatility of the underlying securities.” Liu Ti said.
The third is to enhance the liquidity of the spot market and promote the development of the target market.
In Liu Ti’s view, after options were listed, the trading volume of the underlying ETF and constituent stocks increased significantly, and the priceThe grid impact index has dropped significantly, and the depth of market orders has increased significantly. Options reduce the cost and risk of arbitrage, promote price discovery, and reduce the deviation of prices and net worth.
Since the beginning of this year, the situation of overseas epidemic prevention has remained severe. Domestic epidemics have been repeated occasionally, and the global economic environment and financial markets have been affected to a certain extent. Potential market risks cannot be ignored. It also brings corresponding challenges to the business development of the exchange. The stock options market on the Shanghai Stock Exchange has been operating steadily on the whole, with reasonable pricing, rational investor participation, steady growth in market size, increasing economic functions, and withstanding a series of practical tests in the market.
It is worth noting that although the economic function of stock options has been initially brought into play and has promoted the increase in China’s pricing influence, compared with developed overseas derivatives markets, We also need to see the shortcomings of development.
Liu Ti introduced that in recent years, with the gradual increase in the internationalization of A shares, overseas exchanges have successively launched a large number of financial derivatives with Chinese concepts. Among them, the United States and China Hong Kong and Taiwan have listed nearly 20 domestic A-share ETF-based option products, covering ETFs that track important indexes such as CSI 300, FTSE A50, SSE 50, CSI 500, SSE 180, and ChiNext. In October 2021, Hong Kong launched MSCI A50 futures. On the basis of interconnection and other channels, the rapid development of offshore hedging tools and the over-the-counter derivatives market has enabled Hong Kong to gradually form a relatively complete A-share ecological chain that includes trading and risk management, and its pricing influence is gradually increasing.
But at the same time, there are currently only four domestic A-share related option products, and the coverage is limited to the Shanghai and Shenzhen 300 Index and the Shanghai 50 Index.
“We are still far from the international pricing center.” Liu Ti said that an important measure to shorten the gap and enhance the competitiveness of my country’s derivatives market is Continue to expand the coverage of the subject.
At the same time, with the steady progress of China’s economic development and capital market opening to the outside world, the market is also increasingly demanding to accelerate the development of the options market and form a standardized financial options system strong.
Combining domestic and foreign product development experience, Liu Ti believes that the selection of future option targets can follow three principles.
One is to meet market demand. Choose index market with strong representativeness and high market value coverage, fundThe underlying development option product with large scale, good liquidity and strong investor risk hedging needs. The second is to cover various risk characteristics. It can cover all kinds of product risks, and the product features have a certain degree of differentiation, and finally form a complete product system that can cover wide-based, cross-border, and industry risks. The third is to highlight market characteristics. Select targets with outstanding technological innovation characteristics and launch corresponding technological growth stock options to enhance the capability of option services for technological innovation.
Liu Ti said that the Shanghai Stock Exchange will, under the overall leadership of the China Securities Regulatory Commission, further deepen the option pilot work, enrich and improve the stock option product system, and better utilize the economic functions of option products , To further meet the diversified risk management needs of investors. Launch various ETF option products covering broad-based ETFs, cross-border ETFs, industry and thematic ETFs, gold ETFs, etc., to enrich the product layout; research and launch option products based on overseas stocks or indexes, and increase overseas investment risk management tools; research and launch Individual stock options provide more refined risk management tools.
In addition, the Shanghai Stock Exchange will continue to promote the internationalization of option products, promote the expansion of the investment scope of qualified foreign investors, increase the high-level two-way opening of the capital market, and enhance the domestic derivatives market Competitiveness and influence in the international market.