China to launch govt bond futures market soon
The introduction of bond futures and other hedging derivatives is expected to buttress the development of China's bond market, which has grown rapidly in recent years but remains underdeveloped in comparison to bond markets in developed economies.
Bond futures also will play a role in regulatory attempts to liberalise interest rates by providing a wider variety of fundraising channels with a more diverse spread of yields than officially controlled rates available from banks.
China had 8.07 trillion yuan ($1.30 trillion) worth of government bonds outstanding at the end of 2012, up 9%from 2011, data from China's main bond clearing house showed.
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