Listing of stock index options on horizon

China plans to introduce its first option contracts in stock indexes, in an effort to provide the regulator another method to hedge the risks of Shanghai and Shenzhen stocks markets, according to an official from China's top securities regulator.

"The (China Securities Regulatory) Commission will gradually expand the variety of commodity options and continue to prepare for the listing of the stock index options, on the basis of the smooth operation of the bean and sugar options," said Fang Xinghai, vice-chairman of the CSRC, at the Fourth Shanghai Derivatives Market Forum on May 25.

He also said more products and trading patterns would be rolled out to diversify the risk management functions in the derivatives market.