Study On Financial Derivatives Market In The Context Of Financial Crisis

In the three decades of China's reform and opening up, along with rapid economic growth and constantly improvement in finance, the derivative markets have gradually been developed. After the lately erupted global financial crisis arouse by U.S. subprime crisis, the financial derivative products, especially the OTC derivatives market has become has become an object that the domestic and international debate focusing on with mixed arguments. Some people regard the complex financial derivatives as the fuse the financial crisis, but some others suggest that as a tool the financial derivatives have nothing to do with the damage, while the problem lies in the tool users.China's financial derivatives market is still in the early stage of development, as a developing country, we certainly will be more focused on the impact that the financial crisis brought to China's derivatives market. As the financial crisis hits, on one hand, state-owned enterprises have had to rely more on the hedging financial derivatives abroad since the domestic derivatives Commodities markets are underdeveloped; On the other hand as part of the companies are in a derivatives trading that doesn't match the size, direction, duration of spot goods, which results failures and frustrations of a large number of large scale government enterprises in the international field of financial market derivatives. Our financial derivatives market because itself field development not mature, not with the whole international financial derivatives markets totally connect, in the financial crisis in instead not feel much impact to withstand the cruel financial crisis, while over-the-counter derivatives market but and global financial derivatives as the over-the-counter market by the serious influence. This raises the crisis of Chinese derivatives of inspiration and future development, how to develop China's derivatives market. This raises the question of what experience can be drawn from the crisis to help China's derivatives development and how to develop in the future.As on this question, this paper starts from discussing the financial derivative products from the basic concept, and firstly analyses the development profiles of the OTC derivatives markets inside China in the past twenty years, and then decomposes the damage and impact on China's financial derivatives market, meanwhile compares the impact on foreign markets. Based on these, the paper brings up the inspirations from the impact of financial crisis to China's derivative products, and reached some suggestions to the future development of China's derivatives market.