China to restrict stock index futures trading to curb speculation: Exchange

An investor looking at an electronic board showing stock information at a brokerage house in Shanghai on Aug 25, 2015.
An investor looking at an electronic board showing stock information at a brokerage house in Shanghai on Aug 25, 2015. PHOTO: REUTERS

SHANGHAI (REUTERS) - China will restrict trading in stock index futures in a bid to curb speculation, according to an exchange statement, after the futures contracts slumped by their 10 per cent daily limit for two consecutive days.

China Financial Futures Exchange announced a series of measures late on Tuesday (Aug 25), including raising margin requirements for index futures trading, restricting daily open positions and including transaction fees.

The measures would take effect on Wednesday, it said.