The Shanghai Stock Exchange (SSE) on Monday launched two option products that will be linked to an exchange-traded fund (ETF) tracking the 50 biggest stocks on the Science and Technology Innovation Board (STAR) market, in what experts said will enhance investor confidence, increase market vitality and provide more channels for investors to participate in the STAR market.
According to cnr.cn, the SSE launched the two products on Monday after approval by the China Securities Regulatory Commission. This is the first new stock option variety launched amid the registration-based IPO system.
The report cited Rong Ying, director of the quantity investment department of China Asset Management, as saying that the launch of the ETF options will support the long-term and stable development of the STAR market. It also signals that the STAR market is maturing.
According to Rong, the option products will improve the pricing efficiency of the STAR spot market by limiting volatility. They will also offer effective risk management tools.