With the gradual strengthening of China's economic strength and the continuous expansion of the A-share market, A-shares have been sought after and concerned by overseas investors. Therefore, in order to attract investors' funds, Singapore Exchange launched an index futures contract with A50 index as the target in 2006.
The A50 index futures are also the only overseas futures that track the China A-share market.
Stock index futures are standardized futures contracts with stock price index as the subject matter. The two sides agreed that on a specific date in the future, the underlying index can be bought and sold according to the size of the stock price index determined in advance, and the difference will be settled in cash after the expiration.