OREANDA-NEWS. December 13, 2011. Recently approved by China Banking Regulatory Commission (CBRC), Hwabao Trust Co.,Ltd. became the first company among domestic trust industry to obtain the qualification for Stock Price Index Futures (SPIF) Trading Business, reported the press-centre of Baosteel.

As an important innovative product in Chinese capital market, SPIF attracted a large amount of institutional investors with its function of hedging against systematic risk since it was launched in April last year. The market operates stably and the trading is active. In July this year, CBRC published "Guideline on Trust Companies' Participation in Stock Price Index Futures Trading Business", specifying detailed regulations for trust companies' participation in SPIF business.

In order to ensure the smooth operation of SPIF business, Hwabao Trust made careful preparations in terms of personnel and systems according to the relevant requirements of SPIF trading. Since SPIF was launched, Hwabao Trust completed the combing of total process of SPIF business, established the complete SPIF business management system, and actively participated the discussion and formulation of CBRC's relevant policies of SPIF business carried out by trust companies. The company formulated various rules and regulations including the internal control system, and will carry out the work in strict accordance with the specific details and content of "Business Authorization Management Method" of the company for authorization hierarchy, authorization sum and operation authorization, etc. According to the business demand, the company also set up reliable, stable and efficient SPIF trading management system and SPIF evaluation system, and established the risk control system and risk control module.

Hwabao Trust's SPIF business will operate in two steps of platform business and active management. The first step is to promote the business containing SPIF platform business, Hwabao Trust will commit itself to building a service system assisting the product development, efficient support of IT system and escorting the complete risk control system for private placement institutions. Then the experience of platform business will be summarized to formulate the business procedure, and make preparations for the development of active management type SPIF.