Guide to Financial Spread Betting on the Chinese Stock Market
Clean Financial - The Financial Spread Betting Website
China Enterprise Spread Betting

China Enterprise Spread Betting


Where Can I Spread Bet on the Chinese Stock Market?


You can spread bet on the China Enterprise index with: You can currently spread bet on the China A50 index with:

Chinese Stock Market Updates


Date Trading Update
17-Dec-14 [8:15am]

China A50 Futures Market Report

  • The China A50 is currently trading at 10,490.
  • In the last session, the market closed 500pts (5.20%) higher at 10,115.
30 Minute Indicator Analysis

Rising Stock Market The market is trading higher than the 20 period MA of 10,261 and higher than the 50 period MA of 10,044.

1 Day Indicator Analysis

Rising Stock Market The market is currently higher than the 20 DMA of 8,998 and higher than the 50 DMA of 8,001.

Update by Gordon Childs, Editor, CleanFinancial
10-Dec-14 [6:36am] Chinese Inflation Starts to Slow

There was deflation in China again at the factory gate and now in consumer prices during November slowing the annual rate of CPI to 1.4%.

It is further evidence of China's slowdown but does give the People's Bank of China some flexibility to loosen monetary policy further.

The likelihood of another rate cut to follow the first may depend on industrial production and retail sales data on Friday.

The Chinese government's move to tighten lending practises is probably not a bad thing for long-term financial stability in the country.

However, when combined with a virtually simultaneous cut in interest rates, it raises concerns that the Communist party's micro-management of the economy will eventually end in tears.

Update by Jasper Lawler, Market Analyst, CMC Markets
09-Dec-14 [10:41am] Instability in China is setting US markets up for a lower open on Tuesday, with shares in Shanghai down over 5% and the Chinese yuan vying for what could be its biggest one day decline ever.

Fraud investigations are leading to a purge of Chinese officials, which is shaking up the political make-up of Beijing.

All the while, the economy is slowing, leading to an about-turn in monetary policy and an interest rate cut.

The trading band for the yuan has also been widened which is adding to the volatility.

Update by Jasper Lawler, Market Analyst, CMC Markets

» For more see Stock Market Trading News & Analysis.

Readers please note:


Advert: Chinese Stock Market Spread Betting Guide, sponsored by FinancialSpreads.com.
You can spread bet on the China Enterprise with Financial Spreads.


Where Can I Spread Bet on the China Enterprise for Free?


Investing, by its very nature, does involve risks, but if you would like to open a Test Account, where you can trial spread trading on a wide array of markets, then see below for further details.

When considering which trading option might work for you, don't forget that, in the UK, financial spread betting is tax free*, i.e. it is exempt from income tax, stamp duty and capital gains tax.

If you're trying to find a free trading platform, you should keep in mind that you are able to take a position on the China Enterprise without having to pay any commissions or brokers' fees with firms such as:

Free Demo Account


If you are interested in an entirely free Test Account where you can try out spread betting, and markets such as the China Enterprise, then have a closer look at: The spread betting firms listed above provide a Test Account that lets investors test new strategies, study charts and practice with an array of orders, e.g. OCO and GTC orders.


How to Spread Bet on the China Enterprise

How to Spread Bet on the China Enterprise?


As with a range of financial markets, an investor can place a spread bet on stock market indices, like the China Enterprise, to rise or fall.

Looking at capital spreads, you can see that they are offering the China Enterprise October Futures market at 9623 - 9643. Therefore, an investor could spread bet on the China Enterprise market:

  China Enterprise Spread Trading Example Closing above 9643, or
  China Enterprise Spread Betting Example Closing below 9623

On the settlement date for this 'October' market, 30-Oct-12.

Whilst financial spread trading on the China Enterprise index you trade in x per point. So, if you choose to have a stake of 4 per point and the China Enterprise moves 24 points then there would be a difference to your P&L of 96. 4 per point x 24 points = 96.

For short term trading on a range of indices also see Indices Rolling Daily Spread Betting.


China Enterprise Futures - Stock Market Spread Betting Example


So, if we consider the above spread of 9623 - 9643 and make the assumptions:
  • You have done your analysis of the markets, and
  • You think that the China Enterprise index will finish higher than 9643 by 30-Oct-12
Then you may buy at 9643 and risk 2 per point.

Therefore, you win 2 for every point that the China Enterprise index pushes above 9643. Of course, you will make a loss of 2 for every point that the China Enterprise market decreases lower than 9643.

Thinking of this in a slightly different way, if you Buy a spread bet then your P&L is worked out by taking the difference between the final price of the market and the price you bought the market at. You then multiply that difference in price by the stake.

Subsequently, if, on the settlement date, the China Enterprise market settled at 9706, then:

Profit = (Closing Level - Opening Level) x stake
Profit = (9706 - 9643) x 2 per point stake
Profit = 63 x 2 per point stake
Profit = 126 profit

Speculating on stock market indices, whether by spread trading or otherwise, is not easy. In this case, you had bet that the Chinese stock market index would increase. Naturally, it can also fall.

If the Chinese stock market had fallen and China Enterprise closed lower at 9588, then this means you would end up making a loss and losing money on this market.

Loss = (Closing Level - Opening Level) x stake
Loss = (9588 - 9643) x 2 per point stake
Loss = -55 x 2 per point stake
Loss = -110 loss

Note - China Enterprise October Futures spread betting price accurate as of 26-Sep-12.


How to Spread Bet on the China A50

How to Spread Bet on the China A50?


As with a range of financial markets, an investor can place a spread bet on indices, like the China A50, to rise or fall.

Looking at a financial spread betting site like IGIndex, we can see that they have priced the China A50 October Futures market at 7330.0 - 7370.0. Therefore, an investor could spread trade on the China A50 market:

  China A50 Spread Betting Example Settling higher than 7370.0, or
  China A50 Trading Example Settling lower than 7330.0

On the closing date for this 'October' market, 30-Oct-12.

Whilst placing a spread bet on the China A50 index you trade in x per point. So, should you decide to invest 4 per point and the China A50 moves 23 points then that would be a difference to your P&L of 92. 4 per point x 23 points = 92.

For short term trading on indices also see Indices Rolling Daily Spread Betting.


China A50 Futures - Index Trading Example


Now, if you consider the above spread of 7330.0 - 7370.0 and assume:
  • You have done your market analysis, and
  • You feel that the China A50 index will finish higher than 7370.0 by 30-Oct-12
Then you may go long of the market at 7370.0 for a stake of, for example, 2 per point.

So, you make a profit of 2 for every point that the China A50 index moves above 7370.0. Having said that, such a bet also means that you will lose 2 for every point that the China A50 market falls lower than 7370.0.

Put another way, if you buy a spread bet then your profits (or losses) are worked out by taking the difference between the settlement price of the market and the price you bought the market at. You then multiply that price difference by your stake.

Therefore, if, on the settlement date, the China A50 market settled higher at 7465.8, then:

P&L = (Final Level - Initial Level) x stake
P&L = (7465.8 - 7370.0) x 2 per point stake
P&L = 95.8 x 2 per point stake
P&L = 191.60 profit

Speculating on indices, whether by spread trading or otherwise, doesn't always go to plan. With the above, you had bet that the Chinese stock market index would go up. Naturally, the index could decrease.

If the Chinese stock market fell, and the China A50 closed lower at 7281.6, you would end up making a loss on this spread bet.

P&L = (Final Level - Initial Level) x stake
P&L = (7281.6 - 7370.0) x 2 per point stake
P&L = -88.4 x 2 per point stake
P&L = -176.80 loss

Note - China A50 October Futures spread betting market quoted as of 10-Oct-11.


Where Can I Find Live Spread Betting Prices and Charts for the China Enterprise?


If you would like to access real-time prices and charts for the China Enterprise, you will probably require a spread betting account. Readers should note that opening an account is subject to credit, status and suitability checks.

Should your account application be approved, you can log on and analyse the up-to-the-minute prices/charts. On most platforms, these will be provided as part of the service. So what's the catch? You might get the odd sales letter and/or email from the relevant online spread betting provider.

Of course, if you do spread bet then, before starting, be aware that financial spread trading does carry a high degree of risk and it's possible to lose more than your initial investment.

Although the charting packages differ from provider to provider, to help your trading analysis, the majority of charts come with useful features and tools that include:
  • An array of time intervals - 2 minutes, 1 hour, 1 day and so on
  • Different chart views - line charts and candle charts
  • Drawing options and features - Fibonacci time zones, arcs and fans
  • Technical indicators and chart overlays - Moving Average, Parabolic SAR, Average Directional Index and so on
Charts on CapitalSpreads also offer other benefits:
  • BackTesting and Analysis functions
  • Automatic alerts that trigger when the markets reach a specific level

FinancialSpreads indices candlestick chart

China Enterprise Trading Guide - Example Chart


The following spread trading firms give their account holders access to real time trading charts/prices:

Advert: Chinese Stock Market Spread Betting Guide, sponsored by FinancialSpreads.com.
You can spread bet on the China Enterprise with Financial Spreads.


Trading Risk Warning
'Chinese Stock Market Spread Betting Guide' edited by Jacob Wood, updated 17-Dec-14

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