China Has Largest Futures Market, Then Destroys It

China needs the financial sector. The economy needs financing, as well as GDP growth. Destroying a major success story is not bright.

Bloomberg: China Just Killed the World's Biggest Stock-Index Futures Market
Add the world’s biggest stock-index futures market to the list of casualties from China’s interventionist campaign to stop a $5 trillion equity rout.

Volumes in the country’s CSI 300 Index and CSI 500 Index futures sank to record lows on Wednesday after falling 99 percent from their June highs. Ranked by the World Federation of Exchanges as the most active market for index futures as recently as July, liquidity in China has dried up as authorities raised margin requirements, tightened position limits and started a police probe into bearish wagers.

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