The Research Of China's Foreign Derivatives Market Development

China abolished the yuan'Peg to the U.S.dollar on July21,2005, and tied it to a basket of currencies.It marked the introduction of a more flexible mechanism for the exchange rate'formation.It is not only a milestone to our FX market, but also a good opportuninty for the development of Chinese FX derivative market.Facing the increasing exchange rate risk, enterprises are urged to utilize effeetive measures to hedge exchange rate risk. In contrast,yuan's derivative market develops slowly with only limited Products and can't satisfy market's needs.Therefore,it becomes an urgent topic to study and explore the further development of Chinese yuan's derivative market.This paper's aimed to study RMB derivative market systematically.This paper is set out in four parts.The first Part introduces the objective and signification of this study, covering the status at present,the study method,the structure of the paper and the relative theory concerning FX derivative market.In the second partIt introduces the international FX derivative market including its history and status, and then summarizes its successful developing experiences for reference in many ways.In the third part,I draw an outline of RMB derivative market in domestic and overseas at Present. In the forth Part,I Put forward the signification of developing chinese RMB derivative market from different perspective,then I summarize the difficulties on the way.Finally in the fifth Part I give proposals to construet domestic RMB derivative market,covering its evolution path,microeconomic framework and the relative measures we should take for its further development.