Study Of Development Of Chinese Financial Derivative Market

Finance is the core of the modern economy and the development of the modem finance reflects in the application of financial engineering technology and the development of financial derivative market.Nowadays,financial deverivatives play a more and more important role in the international financial market and are called the core of the general capital marketAs China entered WTO.Chinese economy will join the trend of globlization of world economy.But at present,category of financial product is single,structure and function in Chinese capital market is imperfect.Financial operations remain the conventional operations in the main and the development of financial derivative market lags behind those of developed counteies out and away.Therefore,developing financial derivative deal and expanding financial derivative market are urgent.Financial derivatives are new kinds of financial products that derive from the basic financial products,are the development and recombination of basic financial products.The emergence and development of financial derivatives is the important part of financial innovation.From 1970s,financial derivatives have undergone great development and become a big family whose category is various and structure is complicated.The main types of financial derivatives include forwards,futures,swaps and options.They have four specific properties and their functions is hedge and speculation which can't be dispensed with.The risk management of financial derivatives is closely related to the pricing of financial derivatives.Therefore the article tries to study in the aspect of pricing and get some prices of basic derivatives especially the pricing model of option.The innovation of financial derivatives is the core of financial innovation.The establishment and development of derivative market is actually financial innovation.Contemporary successful financial innovations are founded on the base of mature theory.The reality of financial development of other countries also prove that the more active the study of financial innovation theory is,the higher the success rate of financial innovation is.So.the article makes a systematic study of financial innovation theory.On the base of the theories,the author conclude the motive reason of financial derivative innovation so as to provide some theoretical grounds for developing Chinese financial derivative market.The article summarizes the market features and the supervisory practices of America,England, Japan, Singapore,HongKong,Korea,Taiwan and provides experiences for establishment and development of Chinese derivative market.Linking with the actual situation,the article looks back the history,features and restriction of Chinese derivative market,and provides proposals and schemes about developing Chinese financial derivative market.