Research on setting up stock index future

This paper explores the necessity and feasibility of setting up stock index future in China. Based on international experiences and the present market conditions, it architects a proposal and environment construction for stock index future. By setting up the stock index future in China could mean to some extend avoiding the systematic risk, stabilizing the capital market, speeding up the economic development and benefiting the long-term stock market growth. Through the feasibility study, the paper includes that there is a considerable potential for the management, market development and expertise to establish the stock index future. Finally the paper lays out the frame of designing the stock index future on the transaction body, selection of stock index and index agreement and on the daily management of the index future such as risk control and training the operators. In general, it shall provide the insightful to the construction of the stock index future in China.