HONG KONG: China Financial Futures Exchange said on Monday it would limit daily trading in the CSI 500 index futures, and would also strengthen supervision over the use of index futures in hedging to calm the volatile market.
Daily bets on the CSI 500 index futures, which tracks the CSI 500 index of China's small cap firms, will be limited to 1,200 contracts, based on one side of the transaction, the exchange said in a statement.
The exchange will also check if hedging positions match those in the spot market.
Chinese stocks rose on Monday, as an unprecedented series of support measures unleashed by Beijing brought some relief to a market whose slide over the past three weeks had raised fears about the stability of the world's second-biggest economy.
The CSI300 index <.CSI300> of the largest listed companies in Shanghai and Shenzhen closed up 2.9 percent, while the Shanghai Composite Index <.SSEC> gained 2.4 percent.- Reuters
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