The Chinese futures market remains on an astonishing growth path. For CTAs it is a promised land of opportunity but getting in and out is challenge, finds William Mitting.
Volumes on Chinese futures exchanges have grown from 12m in
2002 to 1.4bn in 2012. And with 1.2bn contracts traded to the
end of July, this year will smash all records on Chinese
New contract launches looks set to fuel the growth. Last
week, the China Financial Futures Exchange relaunched Treasury
bond futures, after an 18 year hiatus. Meanwhile the Shanghai
Futures Exchange is gearing up to launch its long anticipated
crude oil contract and options testing continues across various
For CTAs, the growth represents an unrivalled business
opportunity to trade in this hugely liquid but relatively
immature market. Some CTAs are already active in the country,
many others are looking at how to get into the market. However,
access to China, especially to set up within the country, is
fraught with complexity. But as a result, those firms that do
gain access have a significant edge over their peers.
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