SSE STAR 50 ETF Options Smoothly Launched

06 Jun 2023

On June 5, 2023, the listing ceremony for STAR 50 ETF Options was successfully held at the Shanghai Stock Exchange (SSE). Qiu Yong, Party Secretary and Chairman of the SSE, Xie Dong, Vice Mayor of Shanghai, and Zhang Wangjun, Director-General of Department of Market Supervision I of China Securities Regulatory Commission (CSRC), delivered speeches at the ceremony. Leaders and guests from CSRC, relevant departments of Shanghai municipal government, STAR Market companies, and market institutions attended the ceremony to witness this important moment for the SSE's stock options market.

Chairman Qiu Yong stated that the launch of STAR 50 ETF options is a crucial step in improving the product system of the STAR Market. It can better meet the needs of investors for risk management, attract more medium- and long-term funds to enter the STAR Market, and further leverage STAR Market's function of serving enterprises with "key and core technologies". Under the leadership of CSRC, the SSE will fully implement the decisions and arrangements of the CPC Central Committee and the State Council on the capital market, comply with the comprehensive implementation of the registration system reform, uphold fundamental principles and break new ground, pursue progress while ensuring stability, accelerate the construction of a modern capital market with Chinese characteristics, and make greater contributions to promoting high-quality economic development and the construction of Shanghai International Financial Center.

Vice Mayor Xie Dong stated that in recent years, the STAR Market has played an increasingly important role in supporting the high-quality development of Shanghai's economy and society, with its inclusiveness in supporting sci-tech innovation constantly improving, its clustering effect continuing to strengthen, its quality of "key and core technologies" becoming more prominent, and its role as a test field further highlighted. The listing of STAR 50 ETF options is an important measure to implement the decisions and arrangements of the CPC Central Committee and the State Council on promoting the construction of Shanghai International Financial Center and supporting the high-standard reform and opening up of Pudong New Area. She expressed the hope that the launch of STAR 50 ETF options can further push and guide capital to invest in sci-tech innovation, promoting the mutual empowering and coordinated development of Shanghai International Financial Center and Shanghai Science and Technology Entrepreneurship Center.

Director-General Zhang Wangjun pointed out that since the establishment of the STAR Market and the pilot of registration system more than three years ago, thanks to the concerted efforts of all parties, the STAR Market has seen a sound and smooth development, and its role as a test field of reform has been evident. The listing of STAR 50 ETF options will better meet the diversified trading and risk management needs of investors, further stimulate the vitality and efficiency of the STAR Market, and better assist the capital market's support for sci-tech self-reliance and self-strengthening. Going forward, the CSRC will keep improving the rules and regulations for ETF options , guide the SSE to strengthen operational management and monitoring, continuously improve and optimize risk prevention and control mechanisms, and promote the steady and sound development of the ETF options market.

The trading of STAR 50 ETF options on its first day of listing was steady and within expectation on the whole. There were a total of 144 listed contracts, including call options and put options, 4 expiry months (June, July, September, and December 2023) and 9 exercise price sequences. The total turnover in the whole day reached 309,900 contracts, including 171,500 call options and 138,400 put options; the premium reached RMB 79 million yuan, with a trading face value of RMB 3.442 billion yuan, and a total open interest of 161,100 contracts. Overall, on the first day of listing, the STAR 50 ETF options were reasonably priced, with steady market operation and rational participation by investors.