China's Index Futures Market Reduces Stock Market Volatility, Enhances Price Discovery
The study looked at how Index Futures in China affect stock market volatility and price discovery. Using GARCH model, researchers found that Index Futures reduced volatility in the CSI 300 Index. They also discovered that the futures market and stock market influence each other in the short term, but the futures market responds faster to new information. Overall, the study confirms that Index Futures in China help with price discovery and information transfer, but there is room for improvement.