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An Analysis of the Development Status of the Option Market in China

Jing Li, Lijun Tang

Abstract


In recent years, the fi nancial derivatives market in China has developed rapidly. The fi nancial derivatives market, such as
forward and futures, has become mature after many years of accumulation. Throughout the global derivatives market, options are also an
indispensable investment tool in the fi nancial market. China's fi rst exchange-traded options SSE 50ETF was offi cially listed on February
9, 2015. China's fi rst commodity option, soybean meal option, was listed on March 31, 2017, which means that the construction of China's
derivatives market has entered a new era. Compared with other fi nancial instruments, option, a special fi nancial instrument, has its unique
advantages. Its flexible and diverse trading methods, asymmetric rights and obligations provide more opportunities and guarantees for
traders. Similarly, options can also inject new impetus into the development of enterprises, provide new ideas for solving fi nancial problems,
and are also conducive to the innovation and development of financial institutions. In view of the importance of options market to the
development of the whole fi nancial market, this paper expounds the development status and problems of Chinese options market and puts
forward some strategies, which provides relevant suggestions to promote the development of Chinese options market.

Keywords


options; fi nancial market; derivative fi nancial products; supervision and management

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References


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DOI: http://dx.doi.org/10.18686/modern-management-forum.v6i10.5867

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