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China’s derivatives markets

Abstract:

This chapter presents an overall picture of China’s derivatives market and reviews the history of its development. It not only introduces China’s four futures markets and their futures products, but also discusses the price correlations between different future products and futures markets. Other derivatives markets are also described. The chapter explains why China’s derivatives market is less developed, and why China does not have the very important T-bond futures market. It also discusses the latest development of derivatives products in China’s market, such as the development of CDS (credit default swap). Furthermore, the recent rapid expansion of local underground futures markets is analyzed. The ...

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