Singapore Exchange Ltd. today began trading the world's first index futures based on stocks listed in mainland China, ahead of the planned introduction of such derivatives in Shanghai, Bloomberg reported. The Singapore Exchange is trying to become the center of futures and derivative trading in Asia, preceding Japan in trading index futures based on the Nikkei-225 Stock Average in 1986. Asian bourses have resisted, with the Shanghai Stock Exchange suing to prevent its data being used for the Singapore futures contract, said Bloomberg. ``Foreign investors will be the main participants in Singapore's index futures market as domestic investors cannot easily invest overseas,'' said Liu Chunyan, head of derivatives research at Tongji University in Shanghai. ``China may lose some of its power to price its own assets to foreigners.'' China's tight control on capital inflows and its lack of risk-hedging tools for investors have prompted the development of derivative products elsewhere to mirror Chinese markets and attract foreigners eager to share growth of the world's fastest- growing major economy. Stock exchanges also woo investors with these products for higher trading income.