With "selling" outlawed and anything but cheer-leading strocks higher subject to detainment, it appears the Chinese government has managed to undo 3 years of liberalization and financial deregulation in the space of a week. Futures trading volume on the CSI-300 (China's S&P 500) which for a while in May became the most actively traded financial contract in the world (surpassing S&P 500 e-minis) [2], has utterly collapsed in the last week - since the arrests and detainment of various brokerage executives - to its lowest levels in three years. As one local trader noted - Chinese index futures trading is dead.
In May, CSI-200 Futures were the most actiuvely traded financial instrument in the world - topping S&P e-minis...
[3]
But that has all collapsed now to its lowest levels inm 3 years...
[4]
in the space of just over a week...
[5]
Index futures trading is DEAD already amid all those restrictions imposed!!
HELP...
CSI300 futures vol 38,054 ? It was 500k to 1 mln !!— Simon Ting (@simonting) September 8, 2015 [6]
CSI300 futures volume was #1 and beat eMini-S&P in May~July. Today only 12,700 do far? My peers in mainland all have a long, long face.????
— Simon Ting (@simonting) September 8, 2015 [7]
Re-capitalize your zombified over-leveraged SOEs now!!
Charts: Bloomberg
