China's Hushen 300 index futures trading terminated as China's stocks tumbled over 7 pct on Monday, triggering the circuit breaker mechanism. The contract for January 2016 was down 6.75 percent to close at 3,425 points.
The February 2016 contract dropped 7 percent to close at 3,369.4 points. The March 2016 contract lost 7 percent to finish at 3,326 points and the June 2016 contract plunged 7 percent to end at 3,231.2 points. The circuit breaker mechanism follows changes in the Hushen 300 Index, which reflects the performance of bluechips at China's Shanghai and Shenzhen stock exchanges. When the index rises or falls by 7 percent, the circuit breaker will be triggered with a termination in stock trading.
The stock-index contracts, agreements to buy or sell the Hushen 300 Index at a preset value on an agreed date, are designed to allow investors to bet on and profit from either gains or declines in the market.
The index futures was launched at the China Financial Futures Exchange (CFFEX) and started trading from April 16, 2010. The CFFEX has set the base value for all the four contracts at 3,399 points.
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