China Financial Futures Market Development Problems

From the seventies 20th century, the international economic environment became turbulent. As the floating exchange rate system and the new currency policy come on, many factors such as the broken of the balance of payments, the serious inflation and etc, resulted in the exquisite fluctuation of the interest and the exchange rate in the world. The increased financial exchanges bring higher risks. So the new-style financial instrument -financial futures which is provided with the function of hedging emerges as the times required, and is developing rapidly now. Along with the market economy system come into being , and the deepening reform of the financial system and the reform of the state-owned corporations in China, especially entering the WTO, the national corporations especially the financial enterprises are facing not only the serious competetion in the home market, but also the international market. All kinds of the financial future agreements which intend to hedge the fluctuant risk of the interest rate, exchange rate and the share price, fit the bill more and more .The foundation of the financial futures market which is propitious to the transfer of the economical and financial information helps to the form of the capital assets, and increases the fluidity of the financial market. And the futures market also have three economical functions, such as price discovery, hedging and risk shifting. So China should accelerate futures market development to meet the developing demand of China's international finance. It is a external trend for us to set up the Financial future market.The feasibility to set up the financial futures market is as follows: first, the spot transaction markets have been mature; second, the running in of the futures market have provided tots of invaluable experience in recent years; third, a bound of fund leave-unused have established the base for the appearance of the futures market; fourth, we can also use the successful experience in the world for reference; fifth, the relative independence of the financial futures has provided the possibility for it's running in.Besides, several basal financial markets as the footstone of the financial market such as the national debt market, stock market and foreign exchange market, have become mature gradually. It is the inevitable condition for the development of the financialfuture business.To select the scientific developing-stratagem is a critical- piont of the establishment of the financial futures market in China, the step of which could be classified as investigating stage, testing stage and practicing stage. The frame of the financial futures market is as follows: 1, the design of the agreements; 2, the foundation of the supervise system; 3, the foundation of the dealing and settling system; 4, the diathesis of the attendees and the training of the clerks.