trade china stock index futures

I am visiting china now. unlike western countries, everyone is bullish here.
"average family in Beijing can easily afford BMW and mecedes" read one local news paper in beijing. you got idea how bullish people are nowdays.

anyway, my sense is quite different. Housing market and equity market could crash soon contrary to what newspaper made you beleive.

China just luanched index futures and it looks very strange to me. The underlying of this futures is 300 stock index from shanghai and shenzhen stock exchange. The strange part is that Dec contract is 40-80 points high than Sep contract. The current index value of Sep contract is around 2700.


is there money to be made from such discrepancy?

 

lucky for you being able to trade chinese futures.

I'm currently living in Beijing. Been here for some 17months already.
full time trader.. only trading on my own.

are you experienced with futures spreads?

buy one contract and sell another against it... risk it's limited.
you can create either bullish or bearish....

.... as for Chinese markets,, I have no experience, neither opinion.
and from my zero understanding and exposure to the chinese markets,, I can hardly help you.. But please explore futures spreads and let me know,,, can send me private message if you want.

by the way,,, I dream of a day when chinese markets are fully open to foreigners the way many markets globally do... I would be truly excited to see a day when I could trade chinese markets on daily bases

 

Is it bullish to sell the front month or buy the front month in a futures spread?

 

"As a ‘rule of thumb’, the futures contract closest to the cash market or front futures contract month determines whether you are bullish or bearish in that commodity. If you are long the closer futures contract month in your futures spread, you are in a ‘bull futures spread’ ""

Bullish
-buy the nearest month (front month or ones after it, depends which spread you prefer)
-sell further month

example for this case of Chinese futures of Sep vs December..
-BUY September
-SELL December

 

Can a US person trade Chinese stock index futures?
Which broker (FCM) supports that?
Does IB (Interactive Brokers LLC) allow you to trade Chinese stock index futures?

What is the ticket of INDEX Chinese stock index futures based on ?

 

from my understanding...
Chinese markets are CLOSED to individual foreigners...