Chinese equities fell on Monday with the benchmark Shanghai Composite Index down 0.47 percent, led by financial and real estate companies.
Opening China's stock index futures market to institutional investors is a necessary step for the market to develop to its full potential with arbitrage activity developing quickly as the trading volume increases, said a senior executive of Chicago Mercantile Exchange (CME) Group.
China's stocks may rally 25 percent by the end of the year on higher earnings and the prospect a stronger yuan will allow for an earlier end to the tightening cycle, according to Goldman Sachs Group Inc's Timothy Moe.
The China Securities Regulatory Commission (CSRC) on Friday issued guidelines for securities firms and equity funds to trade stock index futures in a move to regulate their investments and manage potential trading risks.
The ChiNext was down Friday as only 20 of the 71 stocks at China's start-up board for small and medium-sized enterprises rose, while other two stocks were suspended from trading.
Chinese equities fell on Friday with the benchmark Shanghai Composite Index down 0.53 percent, ending the week with a 4.69 percent drop, the biggest weekly decline this year.
China's stock index futures fell on Friday with all of the four contracts closed lower from the previous trading day.
Hong Kong stocks closed down 210.45 points, or 0.98 percent, at 21,244.49 on Friday.
Allianz SE's China joint venture fund management company has received approval from the Shanghai Stock Exchange to develop an exchange-traded fund (ETF) tracking Chinese commodities stocks.
China's stocks fell, led by banks and developers, after the official China Securities Journal said deflating the housing bubble is "necessary" and Citigroup Inc forecast prices may drop 20 percent.
Freeport-McMoRan Copper & Gold Inc Chief Executive Officer Richard Adkerson said there's speculation that copper inventories may increase in China and damp demand for the metal later this year.
Chinese equities slid more than 1 percent Thursday, dragged down by banks and property developers.