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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: RealMuLan who wrote (5168)4/28/2004 1:03:47 PM
From: RealMuLan  Read Replies (1) of 116555
 
CHINA WATCH: Derided In '90s, Derivatives Make Comeback

By J.R. Wu
A Dow Jones Newswires Column

SHANGHAI (Dow Jones)--Derivatives have a bad name in China.

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Blamed for speculative scandals in the early days of the country's modern financial markets, derivatives have been heavily restricted by regulators for nearly a decade.

But now, with nervous investors wondering if authorities will let interest rates and the yuan's value rise to cool an overheating economy, policy-makers are acknowledging the need to arm local financial institutions and companies with more means to protect themselves.

A recent series of moves allowing a comeback for derivatives, as China further opens its markets, represents some of Beijing's biggest market-policy decisions since the late paramount leader Deng Xiaoping launched market reforms more than a a decade ago.
sg.biz.yahoo.com
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