Singapore introduces China futures contracts
7 September 2006
Futures contracts based on China's top 50 A-shares began trading on the Singapore Stock Exchange (SGX) Tuesday despite China turning to the courts in attempt to stop the move, the Financial Times reported. The Shanghai and Shenzhen exchanges claim that FTSE Xinhua, which provides the data SGX used as the basis of the derivatives product, used market information in a manner that violates intellectual property rights. According to state media, a court hearing on the matter will begin next month, although FTSE was said to be trying to reach an agreement with Chinese officials. China intends to set up a derivatives exchange later this year but faces competition from SGX, which is looking to establish itself as the region's premier derivatives market through futures contracts based on shares listed on other Asian markets.