Stock Index Futures Launch Leads to Short-Term Market Instability in China.
Stock index futures trading in China did not make the stock market more stable initially, with heavy plunges in the first two months. By using a method called VaR in the GARCH model, researchers found that the stock market became more unstable in the short term after the launch of index futures. However, in the long term, the market did not become more volatile. The same analysis on CSI300 data showed similar results.