Research On The Investment Of Shanghai-Shenzhen-300 Index Futures

On Sep 8th 2006, china finance futures exchange was inaugurated in Shanghai, Futures contracts was traded in stimulation with Hushen 300 index as its target. All this means that the introduction of exchange index futures in due form is close at hand.Now china is a member of World Trade organization, and plays a indispensable role in the arena of world economy. Exchange index futures are featured for its flexibility and leverage, and it is an extension and supplement of capital market which is paramount to one country s economy. Because of above-mentioned reasons, the finance futures exchange of China is bound to attract the attention of international capital and be an important arena for it. Under a circumstance like this, the futures investment research with Hushen300 index as it target is necessary and paramount.The paper focuses on futures investment with Hushen3000 index as its target, and there are five chapters in it. The first part is for introduction, the target and meaning of this paper are explained in this part. The second chapter is summary of Futures development and exchange index futures. Through the comparing of exchange index futures and other future products, we get a better understanding of exchange index futures. Then I give Hushen300 index an analysis, and explain the analyzing methods at the end of chapter two. The reason that we don t put all analyzing methods in a single chapter is that there are many different points of view and many of the analyzing methods are complicated. On the principle of practice, I analyze the origin of different analytic methods, and try my best to identify the most valuable part in hope that my work can be some help to investors analyze in practice. chapter three is devoted to trade strategy. In this chapter, I introduce various strategies and give detailed analyze to their essence and application. When investing on Hushen300 index futures, we must choose the right investment strategy on bases of combination theory and environment. Doctrinaire is the last thing I want see. Chapter four is for capital management and risk control. It is paramount to control your capital for exchange index futures is characterized by leverage and fluctuation. In this part, investment risk reasons, type, affect and capital management s status and methods were explained in detail. At the end of this chapter, the work and shortcoming of my research was summarized.This paper focused on analytic methods, trade strategy and capital management, which are the three element of futures investment with Hushen300 index as its target. Without the support of Theoretic model and quantitative analysis, this paper is just a dabbling research into exchange index futures investment. I hope this paper can give investors some inspiration to their investment in the future.