Easing in index futures seen as key to liquidity

China's stock market regulator should consider relaxing restrictions on trading in index futures, to improve liquidity in the A-share market and help prevent systemic risks, experts said.

"It's now widely recognized that trading in stock index futures was not responsible for the A-share market slump last year. In fact, the index futures market helps prevent risks," said Ma Wenya, general manager of Sunday Fund Co Ltd, which manages assets worth 300 million yuan ($45.2 million).

In July last year, the China Financial Futures Exchange, where three stock index futures contracts are listed, announced it will adopt a system of differentiated charges based on trading volumes, to make speculation in index futures costlier.