Capital Markets Trading and Investment Strategies in China

A Practitioner's Guide

verfasst von: Xiaojiang Zhang

Verlag: Springer Singapore

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Wirtschaft"

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Über dieses Buch

This book covers in detail the building blocks of Chinese capital markets at the financial instrument level, the analytical pricing term structure of those instruments, the macro and industry economic framework and progress of the liberalization processes at work in the respective markets, the interaction of various participants in the markets, their trading and investment objectives and rationales, some of the most frequently applied trading and investment strategies, and risk management techniques. The book will especially benefit financial practitioners with in-depth knowledge of their respective capital markets area regarding foreign exchange, money markets, fixed income, and related derivatives, and who have a keen interest in gaining deeper insights into the Chinese market so as to develop or strengthen their global strategy application and risk management practice.

Inhaltsverzeichnis

Frontmatter

Chapter 1. Building Blocks of an Investment Portfolio

Abstract

A quick summary of the current state of global foreign exchange market is necessary to provide a context within which detailed discussion on China foreign exchange market can be correctly presented. Since the beginning of this century, the global FX market rose significantly amid the rapid expansion of international trade, which was supported by the newly inclusion of many emerging economies into the global trade system, the falling cost of transportation and rise of the internet that facilitated the information sharing across the globe. More recently, the FX market encountered headwind, especially in the area of spot trade, coinciding with the general decline of international trade. The lack of growth in the FX trading will continue as long as global economy and international trade growth do not pick up speed.

Xiaojiang Zhang

Chapter 2. Macro Economics, Monetary Cycle, Industry Cycle, Monetary Condition, Supply and Demand

Abstract

Based upon methodology used and data compiled by National Bureau of Statistics of China, there are three main contributors to Chinese economic GDP. Analyzing data published by NBSC for the 4th quarter of 2015, of those three factors the most important is the consumption contributing to domestic GDP at about 60%, followed by investment at about 40%, and net international trade.

Xiaojiang Zhang

Chapter 3. Applied Pricing Curve in the Market and Term Structures

Abstract

An FX curve refers to implied interest rate term structure of a specified currency in FX trading, usually the currency other than USD in an FX pair, based upon currency’s FX forward rate/forward points in the market.

Xiaojiang Zhang

Chapter 4. Regulatory Regime and Some Policies in Focus

Abstract

PBOC regulates China’s financial markets, including the inter-bank money market, the inter-bank bond market, domestic foreign exchange market and gold market in collaboration with other regulatory agencies.

Xiaojiang Zhang

Chapter 5. Market Participants

Abstract

The most important fixed income players in China are banks. While banks started to appear in China the mid 19th century, modern banking system started to form in 1979 when China Construction Bank, Bank of China and Agricultural Bank of China were set up to address the need of financial services in basic infrastructure development, foreign exchange and agricultural development respectively. In 1984, three policy banks, China Development bank, Agricultural Development Bank of China and Export Import Bank of China were set up to free CCB, ABC and BOC from policy-related tasks in agriculture and other areas. ICBC was set to free commercial functions from the central bank, People’s Bank of China.

Xiaojiang Zhang

Chapter 6. China, International Trade and Global Supply Chain

Abstract

Global supply chain has fundamentally changed international trade structure. China’s rapid ascendance in the last couple of decades in global economic order can be largely attributed to its successful integration into the global manufacturing supply chain. Many of today’s essential goods are produced by international supply chains that integrate material processing, production technology, participating labor and delivery network across different geographical locations. The current state and future direction of supply chains are relevant for analyzing global and Chinese economic condition and therefore important for applying suitable trading and investment strategies regarding China.

Xiaojiang Zhang

Chapter 7. Portfolio Objectives and Trading and Investment Strategies

Abstract

Long-term, short-term, global and domestic economic changes result financial and other resources to be reallocated among different countries, among different economic sectors and among different financial market segments. In an event of reallocation, liquidity of different economic sectors and market segments could sustain certain upsets.

Xiaojiang Zhang

Chapter 8. Risk Management Practice

Abstract

Progressive financial statements demonstrated banking industry’s continuous improvement on risk management practice. It has become such an import part of investment and trading business, leaving it out might render this book incomplete.

Xiaojiang Zhang

Titel: Capital Markets Trading and Investment Strategies in China
verfasst von: Xiaojiang Zhang
Verlag: Springer Singapore
Electronic ISBN: 978-981-10-8497-3
Print ISBN: 978-981-10-8496-6
DOI: https://doi.org/10.1007/978-981-10-8497-3