The Research Over Development Of Financial Derivatives Market In China

Financial derivatives were introduced after the opening of financial market in China. The trading of financial derivatives in western world began in 1970s. And the international derivatives market presents a constant increasing in 21st century. Financial derivative is called the core of the capital market because of its important role in international financial market.China's economy is integrating in economic globalization with China's entry into WTO. But the types of the derivatives are not adequate. The structure and the function of capital market of China are very simple. The development of financial market is now lagged behind other developed countries. So it is high time that we improve our financial market and participating in the trading of derivatives. The way which China chooses to research its derivatives should be salutatory, which means several steps should be jumped over. Thus, there must be subjective and blindfold at the beginning of development,which is approved by the experience of China in the past years.It has critical meaning to make a feasible research on how to develop derivative market in China under such a globalization situation.The first step of the thesis is introducing the basic conceptions, analyzing the characteristics of financial derivatives and the role of keeping risks away. Next, the necessities of developing financial derivative market are analyzed. The third part of the thesis is reviewing the situation of financial market in developing countries and digging apocalypse from their experiences. Finally, providing suggestions and polices on how to build and improve our derivatives market by analyzing the factors which restricts its development. The innovation of the thesis is analyzing how to build short sale mechanism in China.