SHANGHAI, Sept. 7 (Xinhua) -- The China Financial Futures Exchange, the country's fourth futures bourse and focusing on financial derivatives trade, will be established on Friday in eastern China's Shanghai City.

The China Financial Futures Exchange, with registered capital of 500 million yuan (62.5 million U.S. dollars), is expected to start trade on mainland stock index futures soon.

China's two stock bourse including the Shanghai and Shenzhen Stock Exchange and three futures exchanges in Shanghai, Dalian and Zhengzhou are five shareholders of the China Financial Futures Exchange.

Zhu Yuchen, former general manager of the Dalian Futures Exchange, has been appointed by the China Securities Regulatory Commission as the general manager of the China Financial Futures Exchange.

China has not started trade on stock index futures, which prevents domestic stock investors from being able to hedge risks against an index slump when they buy or hold stocks. Enditem