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UPDATE 1-China cuts margin requirements, transaction fees for stock index futures
September 15, 2017 / 11:11 AM / 11 days ago

UPDATE 1-China cuts margin requirements, transaction fees for stock index futures

* Stock index futures rules eased as market recovers

* State media said last week China should relax rules

* Curbs on index futures trading were imposed during 2015 crisis (Adds context, details)

By Samuel Shen and Andrew Galbraith

SHANGHAI, Sept 15 (Reuters) - China’s financial futures exchange said on Friday it is cutting margin requirements and transaction fees for certain stock index futures contracts, as regulators use an ongoing equity market recovery to relax restrictions imposed during a 2015 crash.

The changes will take effect on Monday.

Margin requirements for CSI300 index futures and SSE50 index futures will be cut to 15 percent of contract value from 20 percent, the China Financial Futures Exchange said in a statement on its website.

Transaction fees for closing intraday positions will also be lowered for all contracts, including CSI500 index futures , according to a separate statement.

The announcement came a week after state media said China’s stock market recovery has created conditions allowing regulators to further ease rules on stock index futures trading, and to fully exit emergency measures adopted during the stock market crash of 2015.

China’s blue-chip CSI300 index has gained nearly 16 percent this year on the back of an economic recovery.

China imposed a series of restrictions on stock index trading during the summer of 2015, when the Shanghai share index lost 40 percent of its value in three months. Regulators blamed derivatives for worsening a crisis that sent shockwaves across global financial markets. (Reporting by Samuel Shen and Andrew Galbraith; Editing by Richard Borsuk)

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