The Need For The Restoration Of China's Treasury Bond Futures Market And Feasibility Studies

T-bond futures is a financial derivative that derives from Treasury bonds. Since from T-bond futures appeared in USA in 1970s, it has been considered as the safest futures. From the angle of commercial banks'hedging and increasing revenues, the thesis analyzes the necessity and feasibility of recovering the T-bond futures market in China as soon as possible. The thesis uses a combination of historical and cross sectional analysis. After comparing the status quo of China's economy with the economic environment at the time when China first set up T-bond futures market and with the condition of foreign countries at the time when they set up T-bond futures markets, the thesis summaries the lessons and experience from the last trial in China and the practice of other countries. Because of the risks faced by commercial banks in deposition and loan and T-bonds investment, the risk controlling skills of commercial banks and the functions of T-bond futures market, the thesis concludes that it is urgent and feasible to recover the T-bond futures market in China as soon as possible. Furthermore, the thesis lists the factors which make it feasible to recover T-bond futures market in China. They are the progress in the marketization of interest rate, the enlargement of the scale and liquidity of T-bond market, the improvement in the quality and quantity of institution investors, the maturity of regulation and trading rules, etc. At last, the thesis gives some suggestions on what progress China has to make to recover T-bond futures market.