Arbitrage Strategies: Futures Market Operation Guide

Author: Yin Xiaofeng
Publisher:
Publishing Date: 2002-10-01
Features: Economic globalization and regional economic integration have been the two major trends in world economic development since the 1990s, with economic globalization being at its core. Compared to developed countries, China's financial market remains relatively underdeveloped. In recent years, with the accelerating process of market-oriented and international economic development in China, joining the WTO has objectively removed obstacles to this international trend. It can be said that China has stood at the threshold of an open economy. In recent times, China's capital market has been increasingly opening up to the world, and financial innovation has become a crucial issue determining whether China can integrate into the global economic tide. However, what constitutes financial innovation and innovative financial instruments remains largely unfamiliar to the general public. There are few popular books available on this topic domestically.
Since the beginning of the 21st century, changes in China's capital market have been nothing short of remarkable: the launch of open-ended funds such as Huata Innovation, Nanfang Stable, and Huaxia Growth, the unprecedented enthusiasm for Treasury and foreign exchange trading among investors, and the imminent introduction of index futures and second-tier markets. QDII and QFII have also become hot topics of discussion in the securities market. New investment products and trading channels continue to emerge, offering investors an ever-expanding range of choices. Regrettably, the Chinese securities market, with its 50 million retail investors, still lacks high-quality financial knowledge resources for the general public.
As a senior executive at a securities company, I recognize that enhancing investors' understanding of financial investment tools is a vital component of investor education. Therefore, I collaborated with colleagues from United Securities Limited Liability Company to organize a group of young scholars in Beijing, Shanghai, Guangzhou, and Shenzhen—individuals with both solid financial theoretical knowledge and extensive practical experience—to compile this series of financial reading materials for the general public, titled "A Series of New Financial Investment Tools." I believe they will be well-received by investors.
From concept development to the completion of the writing process, this series took two years to produce. Titled "A Series of New Financial Investment Tools," its defining feature lies in the word "new." What does "new" mean here? It encompasses two layers of meaning:
1. Recently Introduced: Most of these financial investment tools originated in advanced countries. With the rapid pace of social development, financial innovation continues unabated. The book explores the trends in the development of foreign financial instruments.
2. New Developments: Some financial investment tools have long existed in China but have now undergone new developments and are expected to evolve further in the future.
Two decades ago, the investment channels for Chinese citizens were limited to bank savings and Treasury bonds. A decade ago, China introduced stocks, giving birth to a new class of shareholders. Five years ago, commodity futures experienced rapid growth and gradually gained public recognition. Today, investment in funds and foreign exchange is on the rise, significantly expanding personal investment channels and diversifying available options. In the foreseeable future, index futures and second-tier markets are expected to launch, followed by financial options and offshore finance, which will gradually enter the market.
For these emerging phenomena, our first step is to understand and master them, followed by participation, and eventually, under certain conditions, adaptation and utilization. This series of books begins with fundamental theories and closely integrates theory with practice, providing readers with a sense of on-the-ground operation after reading.
This series consists of six volumes, covering hot topics such as fund-based securities, bond trading, foreign exchange trading, second-tier markets, offshore finance, and commodity futures. The second volume will be carefully selected based on the future development of China's capital market, with the aim of being released to investors as soon as possible.
"The Right Path to Investment: A Guide to Securities and Fund Operations" introduces the basics of fund-based securities, the selection strategies, trading strategies, and investment orientations for closed-end and open-ended funds in China's securities market, as well as tips for buying open-ended funds.
"Money Magic: A Guide to Foreign Exchange Trading" covers the fundamentals of foreign exchange, analytical methods, economic and political factors influencing exchange rates, and foreign exchange futures trading.
"Financial Weapon: A Guide to Bond Trading" explores the basics of securities markets, bond pricing, and investment techniques, offering high practical and theoretical value.
"Strategic Planning: A Guide to Second-Tier Market Operations" examines the functions of second-tier markets in China, the conditions and listing procedures for enterprises, pre-listing financial planning, trading systems, and related issues. It serves as a practical reference for understanding and operating in second-tier markets.
"Discovering Opportunities: A Guide to Offshore Company Operations" focuses on the concept and types of offshore companies, their advantages and characteristics, how to effectively utilize offshore companies, the requirements for setting up offshore companies in different jurisdictions, the composition of offshore service fees, and the process of registering offshore companies. The book is characterized by its novelty and practicality.
"Arbitrage Strategies: A Guide to Futures Market Operations" introduces the role and significance of commodity futures in China's economic development, as well as trading techniques and investment philosophies. It provides a detailed analysis of the principles and practical techniques of hedging, offering valuable guidance for both retail futures traders and enterprises engaged in production, processing, and import/export businesses. The book is highly practical.
The content of this new financial investment tools series is too vast to summarize fully. Readers can select according to their needs. Additionally, it is worth mentioning that all authors are young scholars with high theoretical expertise, possessing both advanced financial investment knowledge from abroad and a deep understanding of China's national conditions. They can be considered elites in the field of financial investment in China.
This series plans to include almost all the latest financial hot tools, covering both current trends and future developments based on China's financial market policies. The selection focuses on key investment topics, the structure is tailored to China's financial market realities, and the writing aims to be clear and accessible. During the writing process, there may inevitably be omissions or oversights, and we sincerely welcome feedback from readers and experts.
The successful publication of this series is the result of the collective efforts of many people. I would like to extend my special thanks to all colleagues at United Securities Limited Liability Company. Their selfless dedication and insightful contributions have significantly enriched this series.