The full name of A50 Index is FTSE China A50 Index, which is an index futures listed on the Singapore Stock Exchange launched by FTSE Russell Index Company in QFII (in short, foreign financial institutions that can invest in A shares in China). Taking the 50 listed companies with the largest A-share market value in China as an index sample, since the market value of these 50 largest listed companies accounts for about one third of the whole A-share market value, foreign investors think that this can represent the index of China stock market and use it as an indicator to measure China stock market.

Because FTSE China A50 index is essentially an index futures, it has all the functions of futures.

1. Price discovery function. The FTSE China A50 index started trading at 9 am, half an hour earlier than the opening time of A shares. In the call auction time of A-shares, the FTSE China A50 index in early trading had an impact on A-share bidding. Recently, due to the high plunge of European and American stock markets, some of these funds flowed into FTSE China A50 index futures (China stock market is relatively undervalued). Therefore, the recent news often sees the news that the FTSE China A50 index fell or rose before the broader market, so it seems that foreign investors have participated in many positions. As we all know, the discovery function of futures is closely related to the position contract. The greater the quantity, the greater the price transmission effect of futures on the spot market. This will probably be the case in the near future.

2. Hedging function. This is also easy to understand. For example, a QFII holds shares of listed companies with the largest A-share market value, and he is afraid that these shares will fall. what should he do ？ Then he will short the FTSE China A50 index in futures, so that he will keep making money. If it goes up, stocks make money and futures lose money. If it falls, stocks lose money and futures make money. Then use this money to offset this part of the loss. Why QFII is keen on FTSE China A50 index futures? Because these institutions are large international companies, they have the money to buy stocks in the A-share market. If they are not right, they still have the money to buy foreign futures to form a hedge.

Summary: As an index futures, FTSE China A50 index has no positive significance for retail investors. First of all, retail investors are unfamiliar with futures trading, and many people don't understand the short-selling mechanism. Then retail investors rarely buy super-large blue-chip stocks with the largest market value, and they can't buy much, so they don't need to buy futures hedging. In fact, almost all retail investors can invest in overseas markets, not to mention stock index futures. These novel things are only useful for institutions, especially QFII. These people are trying to make money. One of the significance of FTSE China A50 Index is that the domestic securities management department found that this piece is a vacuum (foreigners invest in China A-share index futures), and FTSE Russell took the lead, so it launched a more representative Shanghai and Shenzhen 300 stock index futures to compete with it. These thresholds are too high for retail investors. When the FTSE China A50 index rises and falls in early trading, investors can use it as a reference for the opening of the A-share index.