• Hedge: Stock Index Futures Propel Innovation of Stock Market
  • RMB Derivatives (2nd Edition) (Volumes I and II)
  • Financial Derivatives: Evolution Path and Regulatory Measures
Hedge: Stock Index Futures Propel Innovation of Stock Market

Co-authored by Liu Wencai and Lin Weibin
Published by China Financial Publishing House
Published on April 1, 2010

About the Authors
Born in 1976, Liu Wencai, Doctor of Engineering at Tianjin University and Postdoctor in Applied Economics at Fudan University, has devoted himself to the research of stock index futures since he joined in 2003 the postdoctoral research station co-sponsored by Fudan University and the Shanghai Futures Exchange. He participated in from February 2006 on the establishment preparations for the China Financial Futures Exchange (CFFEX), and worked in its departments of trading, information and R&D after its birth. Liu took part in the research on several national natural science subjects and published a number of papers in various journals. In 2006, Liu and Dr. Xiao Hui co-authored “Stock Index: Research on Relationship between Spot and Futures Markets”. 

Born in 1983, Lin Beibin, Doctor of Finance, joined in 2008 the CFFEX to research financial futures and options. He participated in several projects financed by the National Natural Science Foundation and Social Science Fund, and published a dozen papers in such domestic and overseas academic journals as “Management World”, “Journal of Financial Research”, “Quarterly Journal of Economics”. In 2008, his co-authored book “Research on Model of Market Microstructure” was published.

Capsule Summary:
Years of study and work of the authors, both serving the China Financial Futures Exchange, facilitated their precise and unique understanding of the introduction of the stock index futures and their influence on the stock market. Both of them believe that the true value of stock index futures lies in the re-allocation of investment risks on the stock market. Only by understanding that can investors leverage the influence of the stock index futures on the pricing and investment concept of the stock market as well as the assets management industry. The book, an in-depth probe into the stock index futures, aims to orient more investors to the rational participation in the market by demystifying the financial instrument.

The introduction of stock index futures, in April 16, 2010, the first short mechanism of its kind in China’s stock market, will be of profound importance to the stock market.