Manipulation And Regulation In Stock Index Futures Market

Stock index futures are important tools for managing risk in capital market. Compared with traditional risk-managing tools, SI futures are more flexible and cost-saving. Investors are more willing to buy stocks after systematic risks have been hedged. So it is urgent to introduce SI futures to China's capital market in order to nourish stock market and solve the problem of company's dependence on banks for raising money.Although it is very difficult to manipulate SI futures, there are examples of manipulation in SI futures market. As it hasn't been long since China's capital market was established, the regulative system is immature. Furthermore, there is manipulation in China's stock market, so is the potential of manipulation in China's future SI futures market. It will be destructive once there is manipulation in SI futures market. So I choose"manipulation and regulation in stock index futures market"as the topic of my article.The first chapter of this article introduces manipulation and three kinds of manipulation according to Allen and Gale(1992):...