The financial crisis, which started in the U.S. in 2007, accompanied by Chinese financial media's fulltime coverage, instructed Chinese public very well. More than 60 percent Chinese stock investors claimed to have made some profit despite the roller-coaster like index fluctuation.

The introduction of the two financial products shows the Chinese capital market is entering the "deep water" zone embedded with more complicated market practice. Besides instructing Chinese investors, to build a "firewall" on the institutional level, guarding against the possible vicious market manipulation or harassment including moral risks is also important. Therefore, none of the relative laws, regulations, and mechanisms is separable. The announcement on CSRC's website on January 8 signals all preparation for a full scale launch of the two financial products has been completed.

As practice is the only way to test a theory, the public can't wait to find out whether the Chinese stock market will survive this "deep water attempt" without getting drowned.

(This post was first published in Chinese on January 13, 2010, and translated by Maverick Chen.)

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