Stay true to the original aspiration and keep moving forward
On September 19, 2022, the CSI 500 ETF options listing ceremony was successfully held on the Shanghai Stock Exchange (SSE). During the registration ceremony, Pi Liuyi, deputy director and first-level inspector of the China Securities Regulatory Commission’s (CSRC) Market Surveillance Department I, attended the meeting via video link. Liu Ti, executive vice president of SSE, and Yang Xiaosong, general manager of China Southern Asset Management Co., Ltd. (Southern Asset Management), jointly launched the ETF CSI 500 options market opening gong. Dai Wengui, deputy chief economist of China Securities Depository and Clearing Corporation (CSDC), and Yu Wenhong, deputy general manager of Southern Asset Management, disclosed the option contracts.
Liu Ti pointed out that the CSI 500 ETF options are indeed complementary to the existing options product system on the SSE. While improving China’s multi-level capital market system, the new product strengthens the financial market’s ability to serve the real economy. Bearing in mind our position among the “top priorities of the country”, the ESS will accurately grasp the new stage of development, actively integrate into the construction of the new development pattern, and strive to transform the options market. of the SSE into a derivatives market rich in product system, comprehensive trading mechanisms, diversified participants and effective risk prevention function, in order to achieve its original aspiration and mission of “options make investment safer “.
Yang Xiaosong pointed out that ETF options are important financial derivatives. The launch of CSI 500 ETF options is a crucial step to implement the comprehensive deepening of capital market reform and build a multi-tiered capital market system. As the first CSI 500 ETF on the market, the China Southern CSI 500 ETF has become the largest and most liquid product in the same fund category. In the future, Southern Asset Management will continue to attach great importance to the operation and management of funds, to provide strong support for the high-quality development of the capital market and the transformation and upgrading of the real economy.
Regular intra-day trading of CSI 500 ETF options on its first day of trading broadly met expectations. There were a total of 72 officially traded contracts, involving call options and put options, 4 expiration months (October, November, December 2022 and March 2023) and 9 strike price sequences. Total trading volume for the day as a whole reached 267,800, including 105,600 calls and 162,100 puts; the premium amount reached 229 million yuan, with a nominal trading value of up to 15.53 billion yuan, and the total open interest of up to 110,100. Overall, on the first day of listing, CSI 500 ETF options were reasonably priced, with stable market operation, controllable risk and rational investor participation.
In February 2015, China’s first equity options product, the SSE 50 Options ETF, was listed on the SSE, making the SSE the first comprehensive exchange with cash stocks and derivatives in China. In December 2019, the listing of ETF CSI 300 options further enriched the risk management tools of large cap blue chips. Over the past seven years, the scale of the ESS options market has steadily grown and its economic functions are increasingly brought into play. Today, the third variety of stock options traded on the SSE exchange, the CSI 500 ETF options, is listed and traded. In addition to further meeting the diversified risk management needs of the market, it injects new vitality into the SSE stock options market, which has been growing steadily for years. Then, under the guidance of the CSRC, the ESS will adhere to the general principle of pursuing progress while ensuring stability, implement the working concept of “four awes” (being in awe of the market, the state of law, professionalism and risk) and “one common force” (the development of the capital market requires all the efforts of all parties), and actively promote the constant enrichment of the system of options products, l increasing improvement of the trading mechanism and the continuous optimization of investors’ ideas, thus further contributing to the high-quality development of the capital market.