The Study On Interest Rate Liberalization And Development Of Interest Rate Futures In China

Interest rate liberalization is being promoted gradually in China, giving rise to interest rate volatility. Without interest rate risk management tools, such volatility would not be benefit to the process of interest rate liberalization and the effect of financial market. The experience of the developed market indicates that interest rate liberalization must be accompanied by interest rate futures market. It is therefore necessary to study when and how should interest rate future market be developed in China. To some extend, treasury bond futures is the interest rate futures. At present in China, by the process of interest rate liberalization, the variety of economic entities need treasury bond futures trading to manage interest rate risk. This paper describes the process of interest rate liberalization in China, analyzes the various interest rate risk in the process, and studies the role of treasury bond futures market in risk management. This paper finally concludes that that treasury bond futures market should be developed in China.According to this thinking, the thesis can be divided into three parts of preface, text and conclusion, among them the text part is divided into the following four parts:The first part looks back the whole process of the establishment, development and failure of China's national debt futures pilot market, summarizes its meaning and analyses the direct and indirect reasons of the failure.The second part introduces the basic economic function and theoretical foundation of national debt futures business and then explains the necessity of renewing this business.The third part analyses the feasibility of renewing China's national debt futures business under the background of fact that the liberalization of interest rate has made phased progress over the past ten years.The fourth is the key chapter of this thesis. It puts forward proposals to renew China's national debt futures business including further developing and improving the spot market of national debt, setting up the national debt futures market, establishing the system of supervision and management and improving financial legal system.At the end of this thesis, some suggestions are put forward, which will no doubt be of some help to lower the risk of the market, and make the exchange progress smoothly.