Development and utilisation of financial （开发和利用金融）.pdfVIP

Development and utilisation of financial derivatives in China Jinan Yan1 1. Development of the financial derivatives market in China China has made tremendous strides after three decades of reforms and a progressive opening of its markets. By mid-2010, the country’s GDP reached CNY 17 trillion, more than USD 2.5 trillion, and its high economic growth rate has made a significant contribution to the global economy. GDP per capita, however, is still low. GDP and GDP per capita 1952–2009, CNY billions Source: National Bureau of Statistics of China. Finance is the core of a modern economy. China’s financial system has made great progress, in line with rapid economic growth, and has converged on international best practice. As an important part of the modern financial system, financial derivatives have been the focus of much attention in China. A number of RMB derivative types are in use, and the RMB derivatives market has already reached a mature stage in China. 1.1 Commodity-based financial derivatives Commodity futures are the oldest form of derivative. The first commodities futures market in China, the China Zhengzhou Grain Wholesale Market, opened on 12 October 1990. Subsequently, the Shanghai Futures Exchange and Dalian Commodity Exchange have also started operations. 1 Deputy Director-General, Management Information Center, Bank of China 20 IFC Bulletin No 35 Futures market transactions in China June 2010; CNY billions Volume