BEIJING — China's top securities regulator on July 18 announced that it has approved the trading of the futures and options of an equity index that traces the A-share market's small players.

The contract trading of the CSI 1000 Index futures and options will kick off on the China Financial Futures Exchange on July 22, the China Securities Regulatory Commission (CSRC) said in a statement.

The CSI 1000 index, developed by financial market index provider China Securities Index Co Ltd, consists of 1,000 A-share stocks with small market capitalization and good liquidity, which can reflect the overall performance of small-cap A-share stocks.

Equity index futures and options are risk management tools in the capital market. So far, the Chinese mainland capital market has futures products following the CSI 300 Index, the CSI 500 Index and the SSE 50 Index, and an options product following the CSI 300 Index.

The introduction of the new index futures and options will help meet investors' hedging demands and contribute to the steady and healthy development of the Chinese capital market, the CSRC said.