To Enhance The Efficiency Of China's Monetary Policy Transmission Mechanism By Launching Interest Rate Futures

The interest rate marketlization reform of China began in 1978, and had achieved remarkable results after 20 years of development. In china the inter-bank interest rates, the treasury bond interest rates, the deposits rates of financial institutions, the foreign currency deposits and lending rates had been liberalized, and gradually established a good interest rate formation mechanism of the money market and the bond market. Treasury bond was tender-type issued to commercial banks and other financial institutions in inter-bank bond market. Treasury bond interest rates marketlize firstly, so that treasury bond interest rates connect the money market interest rates, advanced interest rate marketlization.Along with the deepening marketlization of interest rates, interest rate fluctuation will become increasingly frequent, interest rate risk will grows. China is required to open the financial markets to the outside world after the access to WTO and it will inevitably lead to a considerable number of major adjustments in industry and resource, and economic volatility will increase.Ultimatly it will be reflected in the financial markets and interest rates, making financial institutions, enterprises and residents face the increasing interest rate risk.However, the tools of hedge interest rate risk are lack currently, far from meeting the current strong demand for managing interest rate risk. Face to the interest rate risks, there is an urgent need to establish the interest rate risk management pattern based on derivative products. The experience of development in decades has proved that the most effective interest rate risk management tool is the interest rate futures. The best carrying body of interest rate futures is bond futures.From the end of bond futures pilot the macroeconomic and financial market environment has been tremendous changes after the development for 10 years, basically has the reopening of the bond futures trading conditions. The introduction of treasury bonds futures is the general trend.Interest rate futures have unique function, and its introduction is bound to affect our monetary policy transmission mechanism...