China gov bond futures opened to banks to trade

Discussion in 'Financial Futures' started by optquant, Apr 17, 2020.

  1. optquant

    optquant

    China Focus: Commercial banks enter treasury bond futures market

    Three Chinese commercial banks signed membership agreements with the China Financial Futures Exchange on Friday, becoming the first batch of commercial bank members of the country's major futures exchange.

    It marks China's commercial banks enter the country's treasury bond futures market for the first time, ten years after China launched the financial derivatives.

    The three commercial banks are Industrial and Commercial Bank of China, Bank of China, and Bank of Communications.

    In February, China allowed eligible pilot commercial banks and insurance institutions with investment management capabilities to participate in the treasury bond futures trading of the China Financial Futures Exchange.

    China's commercial banks and insurance institutions are important treasury bondholders. By the end of February, the treasury bond held by commercial banks was nearly 10 trillion yuan (about 1.42 trillion U.S. dollars), accounting for about 65 percent of the total amount of treasury bonds in custody.

    for more info about China financial futures market,can check https://fangquant.com/node/financial-futures
     
  2. maxinger

    maxinger

    I doubt foreigners can trade China gov bond futures
     
  3. keesa

    keesa

    As long as CNY is tightly controled, all tradings are behind the closed door for domestic investors.
     
    beginner66 likes this.
  4. Although most emerging economies recorded an unprecedented capital outflow due to the epidemic, demand for China's sovereign bonds issued in renminbi continued in April.
     
  5. bone

    bone ET Sponsor

    First of all, the Chinese Communist Party flat out refuses to allow the Yuan to truly and legitimately "float" on the world currency markets - like other benchmark currencies (namely, the Dollar, the Euro, the Franc). The CCP maintains a huge State-run currency trading desk that is tasked with pegging the Yuan artificially low against the Dollar.

    So this is bassackwards, IMO.
     
    beginner66 likes this.
  6. Nighthawk

    Nighthawk

    Dear bone,

    explain what the Swiss National Bank is doing, the Bank of Japan, Bank of Korea, ECB and other so-called "free float" central banks around the globe?

    Under the umbrella of "democracy" these central banks are engaging in the same maniac "control mechanisms" like the PBOC....

    As long as peace on Mother Earth is guaranteed through all their actions - so be it!