The Research On The Development Of Financial Derivatives In China

As China's financial reform goes deeper, a ready foundation has been laid for the development of financial derivatives market. With the marketerization of both the exchange rate and interest rate of RMB, and the successful implementation of the equity division reform, there is an increasing need for the development of financial derivatives market. How to properly make use of financial derivatives while keeping risks strictly under control is a major challenge to China's commercial banks. Base on the long working experience in China's banks (especially in Financail derivatives related Dept.), plus abundant data from the real trading, the author finally chooses the "development of financial derivatives in China" as the subjest.The article analyzes the current situation and trading spciality of Chins's commercial banks' trading and risk control on financial derivative base on the theory of financial derivative trading and risk controlling; with the real finalcial derivative trading case happened on certain China's commercial bank, the author shows us the property of the financial derivative, such as value assuring, risk avoding, two sides of the coin etc. At the end of the essay, the author makes several feasible suggestions as to push forward the development of financial derivatives market considering the real situation of China's commercial banks.