1. What is the relationship between FTSE A50 futures and the broader market?
1。 The FTSE China A50 Index is compiled by FTSE Russell Index Company, one of the four largest index companies in the world. The index has 50 constituent stocks, including 50 companies with the largest market value in China A-share market. The distribution of its constituent stocks is similar to that of the SSE 50 Index. FTSE China A50 index futures are derivatives of FTSE China A50 index, that is, stock index futures based on FTSE China A50 index. On 20 1 1 year, FTSE China A50 index futures was listed in Singapore, which is also the first stock index futures directly targeting Chinese mainland stock index in the world.
Two. Geometry of FTSE A50 Index's Influence on Market
Because of the time difference, US stocks and European stocks will open after the closing of A shares. The important information during this period will have a certain impact on the trend of A shares the next day. The continuous bidding time of Shanghai and Shenzhen stock markets is generally 9: 30 am-11:30 am and 1: 00-00 pm. However, FTSE China A50 index futures have two trading periods, T period 9:00- 16336030, T period 1 period 17:00- 4:45 the next day. It can be seen that FTSE A50 futures index not only opened 15 minutes earlier than SSE 50 and CSI 300 index, but also covered the trading time of A shares after closing and the trading time of US and European stock markets. Therefore, when there is important news in the market, FTSE A50 often reacts before the mainstream index of Shanghai and Shenzhen stock markets. The FTSE China A50 index has a linkage effect on the A-share market, which can reflect the overall mood of the A-share market to a certain extent, so the FTSE A50 index will affect the investment behavior of the A-share market.
(The above views are for reference only, and the investment risk is at your own risk. )
Related Questions and Answers: Related Questions and Answers: Is A50 related to the domestic stock market? Of course. The full name of A50 index is Xinhua FTSE A50 stock index futures with the code CN00Y. Many old investors mostly look at this indicator to predict the market trend, because the trading time of A50 index is much longer than that of domestic trading. Let me talk specifically about A50 stock index futures. The chart below shows the trend of A50 in color, and the trend of Shanghai Stock Exchange in gray. Subjects can taste it first.
What exactly is Xinhua FTSE A50 stock index futures? Xinhua FTSE China A50 Index is a real-time tradable index launched by Xinhua FTSE Index Co., Ltd., one of the four largest index companies in the world, to meet the needs of domestic investors in China and qualified foreign institutional investors (QFII). It will be settled in US dollars through the electronic trading platform "SGXQUEST". Including the 50 companies with the largest market value in China A-share market, the total market value accounts for 33% of the total market value of A-shares. It is the most representative index of China A-share market, and many international investors regard it as an accurate indicator to measure the China market.
As can be seen from the previous paragraph, the constituent stocks of the index include 33% of the market value of A-share listed companies, and they are basically constituent stocks of the A-share SSE 50 Index, so the Xinhua FTSE China A50 Index and the A-share SSE 50 Index are highly correlated. It can also be seen from this passage that the purpose of compiling this index is to meet the needs of domestic investors and qualified foreign investors (literally here, the real use will be explained below).
Trading Mode of Xinhua FTSE China A50 Index
The trading rules of A50 futures index can be seen in the encyclopedia, but it seems a bit cumbersome and meaningless. Simply know the following points.
The trading unit is 1 USD multiplied by A50 index at the time of delivery, which is about 12800 USD at present. Unlike the big A shares, which require 100 shares, this one is bought one by one.
The rest is similar to the operation of futures stocks. If you want to study it carefully, go to the encyclopedia and have a good look. I won't copy it here. I think some netizens copied it.
Correlation between A50 Futures Index and A-shares
I want to talk about this seriously, after all, it fits well with the subject's question.
QFII's investment in China A-shares objectively needs hedging tools to hedge risks, because it has long been familiar with and used to hedging risks by using derivatives rivals' chips when investing in developed markets. It should be said that the introduction of A50 stock index futures meets QFII's demand in this respect to a certain extent. With the help of hedging tools, QFII increased its holdings of A50 index heavyweights before the launch of A50 index futures.
Because A50 stock index futures are listed on the new offshore exchange and are not restricted by domestic regulators, the regulators are worried. Before A50 stock index futures were introduced, SGX Nikkei 225 index futures and SGX Morgan Stanley Capital International Taiwan Stock Index futures already existed in SGX. Because these two stock index futures were launched before the launch of the local Nikkei 225 stock index futures and Taiwan Province weighted index futures, they caused great shocks to the Japanese and Taiwan Province stock markets, causing heavy losses to some local institutions and a certain degree of decline in pricing power (many years later, the trading volume of Motel Index is still about 1/3 of Taiwan Province weighted index futures, and it has not been marginalized). The lessons of Japan and Taiwan Province Province made the mainland regulators in China wary, took a hostile attitude towards A50 stock index futures, and took various measures to suppress it (including asking the Shanghai Stock Exchange to sue them for breach of contract on the issue of index licensing). ). the trading time far exceeds the trading time of a shares. There are a lot of good news or policies in China, which are generally released after hours, which is actually a good opportunity for people who speculate on A50.
Trading hours of A50 stock index futures contracts
T period: 09:15 ~1:35, 13: 00 ~ 15: 05.
T+ 1 period: 15: 40 ~ 22: 55.
The trading time during T+ 1 is the time when the announcement of listed companies and other information is released in China, which will be reflected in the closing price during T+ 1, which will lead to the impact of the offshore market on the opening of Shanghai and Shenzhen stock markets the next day, and the mainland stock market may become a "shadow market". Look at the picture below to see the impact of A50 on A shares. The data comes from Shenwan Securities.
In fact, another point is the so-called conspiracy theory. Because of the correlation, A shares can be influenced by A50, and then A shares can be operated. This is entertainment. Just look at it. After all, we are all ordinary people and have no contact with the deepest things.
QFII's understanding of the market is several grades higher than that of domestic institutions. Whether QFII entered the market at the Shanghai Stock Exchange Index 1000, or its previous heavy brokerage stocks, it has proved this point. QFII escaped unscathed when the Taiwan Province and Japanese stock markets crashed. These investors have a sense of smell and predictive ability beyond imagination. Therefore, it is of great reference significance to pay attention to A50 futures index.
Many friends don't know how to check A50 futures index. Here is a brief introduction. Generally, enter CN00Y in the stock APP or software to view the trend of A50 futures index in real time.
Of course, some students like to watch it on the website. You can directly search CN00Y in the search engine, and you can also find many websites that can be viewed in real time.
Welcome everyone to pay attention and communicate.