Recently, the China Financial Futures Exchange ("CFFEX") has issued the Circular on Adjusting the Margin for the CSI 300, SSE 50 and CSI 500 Stock Index Futures Exchange and the Circular on Adjusting the Rate of Service Charge for Stock Index Futures Exchange (collectively the "Circular").
The Circular makes it clear that from the settlement on February 17, 2017, the rate of margin for all contractual non-hedging transactions for the CSI 300, SSE 50 stock index futures and for the CSI 500 stock index future will be adjusted from the current 40% of the contract value to 20% and 30% respectively. According to the Circular, the rate of margin for all contractual hedging transactions for the CSI 300, SSE 50 and CSI 500 stock index futures will remain as 20% of the contract value. Moreover, the Circular provides that from February 17, 2017, the rate of service charge for all contractual transactions that close out the current position for the CSI 300, SSE 50 and CSI 500 stock index futures will be adjusted to 0.092% of the transaction amount.