Friday, September 6, 2013

China's government bond futures re-launch today with strong demand!

President of Ceres Ltd David Nealis at  the China Financial Futures Exchange 

 China's government bond futures re-launched today with stronger demand than expected 

China's government bond futures saw stronger than expected interest from investors when they re-launched today, after an 18-year hiatus from the market.

China's State Council had approved the trading of government bond futures and given permission to the China Financial Futures Exchange to allow trading to begin today, according to the China Securities Regulatory Commission.

This is the second product listed on the China Financial Futures Exchange and to have a better control on risk, in the beginning the margin requirements will be slightly higher than normal, it will temporarily be set at 3% the exchange has stated.

Today there seemed to be a great deal of retail investor participation with a much stronger demand than what was expected. 

China, the world’s 2nd largest economy, continues to be the most important market for companies looking for growth and Chinese companies continue to globalize by investing and selling their products in new markets; what is your company’s strategy for engaging China?

Futures and Options Risk Disclosure
Trading futures and options involves the risk of loss. You should consider carefully whether futures or options are appropriate to your financial situation. You must review the customer account agreement and risk disclosure prior to establishing an account. Only risk capital should be used when trading futures or options. Investors could lose more than their initial investment. Past results are not necessarily indicative of futures results. The risk of loss in trading futures or options can be substantial, carefully consider the inherent risks of such an investment in light of your financial condition.

No comments: