Feasibility Study On Relaunching The National Debt Futures In China

China has carried on the national debt futures in early 1990s. Unfortunately they were suspended after three years due to over-heated speculation and the price manipulation. Nowadays futures contracts have been playing a vital role in the global economy, so it is necessary and important that China relaunch the national debt futures market.This paper discusses mainly about the feasibility of relaunching the national debt futures market, after over 10 years' development of national financial market and skills in governance. In this article, firstly, it shows the basic price-making theory on financial assets in the financial markets. Secondly, it goes back to thel990s,analyzing the reason why the project of national debt futures failed, and shows the difficulties of relaunching the national debt futures market. Then, over ten years later, under the developments of our bond market and the improvements of governance, relaunching the national debt futures is feasible. At the same time, suggestions on the debt futures are given at the end of this paper.