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A Study Of The Basic Conditions Of Developing China's Financial Derivative Market

Posted on:2003-03-04Degree:MasterType:Thesis
Country:ChinaCandidate:X N ChengFull Text:PDF
GTID:2156360092465917Subject:Business Administration
Abstract/Summary:PDF Full Text Request
Financial derivatives is the most revollltionary innovation in the 20th century,as theraPid developing of China's economic and the formal attending of the World TradeOrganization,it has great significance for China today to develop the market offinancial derivatives. Since the currency system of the Bretton Woods collaPsedafter 1970's,the price of inierest rate,exchange fate and securities in the financialmarket fluctuated violelltly,investors and financial organizations sought for somekind of new financial insttument one after another to avoid risk,and financialderivatives such as futures,options and swaP emerged under suchcircumstance,then developed to be the most effective financial instaent totransfer and avoid risk.Firstly, this paPer analyses the historic condition of the emerging anddeveloping of the abroad financial derivative market,then reviews the generalsituation of the domestic derivative experimental transaction,clarifies the reasonsof it's failure,makes a summary of the necessary economic environment ofdeveloping financial derivative market.Next,on the basis of the above analysis,this paPer compares the presentsituation of China with that of westem coulltries and puts f()rward that we havepossessed the basic precondition of establishing our derivative market,but theindispensable basic conditions is not very comPlete,such as macroeconomic systemand micro financial market,including the property right construction ofmicroeconomic principal pedicipants,the marked orientation of interest rate andexchange rate. Also the system of transaction and accounting,the system ofsuPervision,the equipmeni and technician and so forth as the basic condition ofdeveloping derivative market are not perfect.Finally,this paPer concludes that in order to accelerate the progress ofChina's derivative market,it must be under the govemment's promoting,creatingthe necessary conditions,selecting the correct strategic step,developing Chinesederivative financial market in the course of the colltinuous comPleting of the basicconditions.
Keywords/Search Tags:Financial, Derivatives, Financial System, Innovation
PDF Full Text Request
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