China will resume trading of the long-awaited treasury bond futures next week, 18 years after it was suspended over a trading scandal, the country’s top securities regulator said yesterday.
China will launch its five-year government bond futures at the China Financial Futures Exchange on September 6, a spokesperson with the China Securities Regulatory Commission told a news briefing. The five-year bonds are the most heavily traded on the spot market.
The regulators have introduced new set of rules and carried out trading drills to ensure stability in trading, the CSRC said.
Trading of T-bond futures was suspended in 1995 after a brokerage sent prices hurtling by selling massive orders.
The T-bond futures will be China’s second futures market after its index futures.
Analysts said the financial derivatives will help investors to hedge risks and will provide a tool for managing interest rate risks as China works toward market-oriented interest rate reforms.