1, change the rules of the game, and the market trend will be more rational and stable.
Stock index futures will change the previous rules of the game, and the pattern of unilateral market will be changed. On the premise of shorting, institutional investors obviously have incomparable advantages over retail investors, and the game between institutions will also become the main theme of the market.
As a new financial derivative, stock index futures do not hinder the investment and participation of retail investors. However, whether from the perspective of speculation or hedging, institutional investors have incomparable advantages over small retail investors, which means that stock index futures itself is a variety that is more conducive to institutional investors to participate in trading. In addition, stock index futures will end the situation that only unilateral markets can make profits, and the rules of the market will be more reasonable. Due to the above situation, the introduction of stock index futures will inevitably change the current rules of the game, and the market trend will be more stable and reasonable.
2. Accelerate the adjustment of stock price structure, and blue-chip stocks will become scarce resources.
According to the experience of foreign markets, with the introduction and development of stock index futures, it will be favored and concerned by more institutional investors, and the trading volume will gradually increase. Weighted blue-chip stocks that can exert influence on the stock index, have good fundamentals and high liquidity will be more and more concerned and robbed by institutional investors. In addition to the unsatisfactory fundamentals, the biggest feature of poor quality companies is their poor influence on the index, which leads to their gradual abandonment by institutions and shrinking activity. The structure of the stock market will be gradually polarized, the main blue-chip groups will determine the direction of the market, and the liquidity and trading activity will be improved. Small-cap stocks with poor image and fundamentals gradually degenerate into neglected fairy stocks, and then lose liquidity and are gradually marginalized.
3. Accelerate the development of institutional investors.
With the arrival of stock index futures trading, a large number of traders in the capital market will flood in, including both hedgers and speculators. At present, investors in the securities market, such as securities companies, fund companies, private equity funds and other securities institutional investors and individual investors, will join the game in the futures market.
As we mentioned in the first article, the introduction of stock index futures will strengthen the trading advantages of institutional investors and provide them with new investment choices and tools to avoid risks. And large institutional groups can "hold the emperor to make the princes" by collectively holding large blue-chip stocks. These will undoubtedly further determine the trading advantages of mainstream institutional investors and provide greater development space for this group. In this case, the trading advantage of small and medium-sized funds is further lost.
4. Accelerate the integration of the capital market, so that the stock trend can reflect the fundamental information more quickly.
After the introduction of stock index futures, it will also strengthen the connection between futures market and other financial markets such as securities market and money market, and the institutional isolation between futures market and mainstream financial market will naturally disappear. The main reason for this situation is the mutual flow of funds between the two markets. At present, there are great differences between the groups of investors who participate in the futures market and the stock market. However, with the emergence of stock index futures, there is no doubt that it provides a mutual flow channel for participants in the two markets.
In addition, at present, the price trend of many large-scale trading varieties in the futures market is often ahead of that of the corresponding stocks in the stock market, reflecting macro fundamentals. Once investors and funds flow between the two markets, the transmission of investment information and investment methods will converge, and then the trend of the stock market will be affected by the futures market and be more sensitive to fundamentals.