China gov bond futures opened to banks to trade

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

  1. 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.

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  2. maxinger


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


    As long as CNY is tightly controled, all tradings are behind the closed door for domestic investors.
  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.