The China Securities Regulatory Commission announced on July 5 that China will resume the issuance of treasury bond futures after 18 years of suspension.
The trading is expected to start in about two months.
The bond futures mark the second product in China's financial futures portfolio, following index futures.
The move to resume treasury bonds came amid China's deepening of market-oriented interest rate reforms, which have generated strong demand for hedging interest rate risks.
"In the long run, it will help the Chinese financial market become more liquid and more efficient," Leo Melamed, Chairman Emeritus of the Chicago Mercantile Exchange (CME), said on the sidelines of the fifth China International Assets Management Conference on July 7. |