The expansion of participants in the national debt futures market finally landed. On April 10, commercial banks officially started to participate in the national debt futures business.
The first batch of pilot institutions include Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank and Bank of Communications. On the same day, Industrial and Commercial Bank of China, Bank of China, Bank of Communications and China Financial Futures Exchange signed a membership agreement to become their first batch of non-futures company members.
At the launching ceremony, Fang Xinghai, Vice Chairman of the China Securities Regulatory Commission, said in his speech that under the unified leadership of the Finance Committee of the State Council, the Ministry of Finance, the People ’s Bank, and the Banking and Insurance Regulatory Commission With the vigorous support of relevant ministries and commissions, commercial banks today officially became members of the China Securities Exchange to participate in the Treasury futures trading. This embodies the wisdom and sweat of the industry, marking that the development of China’s national debt futures market has reached a new level and is of great significance to the formation of a unified and efficient financial market.
Fang Xinghai pointed out that interest rate is the most important financial market price. As a tool for interest rate discovery and management of interest rate risk, government bond futures are an important part of China’s financial market. After more than 6 years of development, we have formed a treasury bond futures market with three key maturity products of 2 years, 5 years, and 10 years. The market is operating well, which improves the liquidity and pricing efficiency of the bond spot market and improves the yield curve of government bonds. It played an important role. Today, as the largest holder of Treasury bonds, commercial banks participating in Treasury futures trading will further increase the effectiveness and representativeness of Treasury futures prices, promote the intrinsic organic integration of various financial factor markets, and improve the efficiency of financial market allocation of resources . At the same time, after participating in Treasury futures trading, commercial banks can make full use of Treasury futures instruments to manage interest rate risk and stabilize asset values; on the other hand, during the volatility of the bond market, they can also use Treasury futures to have good liquidity and fast transactions Advantage, diverting the bond market selling pressure, and smoothing the fluctuations in the spot market, thereby promoting the overall stable operation of the bond market.
Fang Xinghai said that this year, affected by the new coronary pneumonia epidemic, the global financial market has fluctuated violently and the risks have been significantly amplified. Against this background, China’s financial futures market has progressed steadily, effectively serving the needs of financial companies. At present, China is accelerating the restoration of production and living order under normal conditions of epidemic prevention and control. At the same time, economic and social development faces many challenges. CICC should closely focus on the purpose of serving the real economy, play a central role in the capital market, orderly increase the supply of financial futures options products, continuously improve the quality of market operations, expand market depth, and make financial futures become a financial institution to help smooth operation of the financial services market An important force for healthy development.
China Industrial and Commercial BankIn his speech, Liao Lin, the deputy governor of the bank, said that the pilot participation of commercial banks in the national debt futures market is an important practice for China to deepen the reform of the financial system and promote the marketization of interest rates. As one of the largest institutional investors, underwriters and market makers in the interbank market, ICBC has extensive experience in interest rate derivative transactions. This participation in the national debt futures market will actively play the role of a large bank and help the stable and healthy operation of the national debt futures market.
Deputy Governor Sun Yu of the Bank of China stated in his speech that the inclusion of treasury bond futures in the trading investment scope of commercial banks will help commercial banks to further enrich hedging tools for interest rate risk, and It is helpful for commercial banks to further improve the management efficiency of interest rate risk. I believe that the Bank of China can bring new vitality to the development of the Chinese government bond futures market, and wish the Chinese government bond futures market a brighter future.
The expansion of the participating entities is regarded as a heavy positive for the Treasury futures market. On February 21, the China Securities Regulatory Commission, the Ministry of Finance, the People ’s Bank of China and the China Banking and Insurance Regulatory Commission jointly issued an announcement that, with the consent of the State Council, allowed qualified pilot commercial banks and insurance institutions with investment management capabilities to comply with laws and regulations, controllable risks, and commercial The principle of sustainable participation in China’s financial futures exchange (hereinafter referred to as “CICC”) national debt futures trading. The first batch of pilot institutions include Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, Construction Bank, and Bank of Communications.
As of the end of 2019, China ’s inter-bank market book-entry treasury bonds accounted for about 14.7 trillion yuan, of which commercial banks held up to 64.99%. As the largest holder of Treasury bonds, commercial banks have been absent from the Treasury futures market and lacked the necessary hedging tools for interest rate risk. However, due to the lack of heavyweight participants such as commercial banks, the scale of the national debt futures market is somewhat different from that of mature markets such as the United States and Germany.
CICC said that the participation of commercial banks in Treasury futures trading marks a new step in the development of China ’s Treasury futures market, which has the role of forming a unified and efficient financial market Significance.
On that day, Bank of Communications successfully completed the first day of trading of commercial bank treasury bond futures, and reached multiple transactions on various contract types. Bank of Communications Chairman Ren Deqi believes that commercial banks’ entry into the Treasury futures market will help commercial banks improve their interest rate risk management capabilities, enhance their ability to serve the real economy, and enhance the depth and breadth of the national debt maturity or market, promote China’s financial market transaction innovation, and accelerate The construction of the Shanghai International Financial Center is conducive to cultivating a team of financial professionals, laying a solid foundation for maintaining national financial security, and will surely become another important part of China ’s deepening financial reform processCheng Bei.