Treasury Bond Futures Market And The Development Of A Feasibility Study In China

National debt futures originated in the United States in the 1970s. From the dates of their births, these most traded futures contracts have been playing a vital role in the global economy. China developed its own national debt futures in late 1992. Unfortunately they were halted three years later due to over-heated speculation and lack of necessities.Eight years later, with the improvements in the national debt cash market and skills in governance, it has become obvious that we should reconsider the fundamental functions of national debt futures and study the possibilities of relaunching the market.This thesis is divided into four chapters. The first chapter gives an overall view of the national debt futures market. The second deals with the theoretical pricing of the national debt futures and the three different kinds of transaction in the market: hedge, speculation and arbitrage. The third chapter analyses the importance of governance in the national debt market and the governing systems around the world. The last chapter returns to China with the viewpoint that national debt futures could be the primary consideration if we want to initiate our own financial futures markets.