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.

Auteur

Xiaojiang Zhang worked at various large global financial institutions in the areas of foreign exchange, fixed income, derivatives trading and portfolio management. Author of Capital Markets Trading and Investment Strategies in China published by Springer in 2018. Author of Mechanical Analysis of China's Macro Economic Structure published by Springer in 2020. Two times top economic think tank award winners.

Contenu
Part 1. Portfolio building blocks covering foreign exchange, money markets, fixed Income and derivatives Instruments1Traded Foreign Exchange Instrumentsa) Onshore CNY FX instrumentsi. The markets, currency pairs traded and various market convention. ii. FX Spotiii. FX Forwardiv. FX Swapv. FX Optionvi. The pricing mechanism in the onshore wholesale market and retail market.b) Offshore CNY/CNH FX Instrumentsi. The markets, currency pairs traded and various market convention. ii. Deliverable vs. NDFiii. FX forward tradeiv. FX Optionv. The pricing mechanism in the offshore wholesale and retail marketc) The capital flow and pricing transmission between Domestic CNY market and offshore CNY/CNH market2Traded Money Market Instrumentsa) Onshore CNY Marketi. Diversified participantsii. Liquidity and historical developmentiii. Short maturity dominationiv. Instruments traded1. Repo and Reverse Repo2. Loan Deposit3. Sec Lending4. Cross-border CNY financing with Loan/Dep5. CD6. MM fundv. Different MM indices: SHIBOR, Repob) Offshore FX managementi. Instruments traded1. Repo and Reverse Repo2. Loan Deposit3. Commercial Paper4. Short treasury securities5. CD6. FX Swapii. Transaction initiation channels1. Loan/Deposit with Reuters and other terminals, Broker quotes, Counterparty quotes2. FX with Reuters and other terminals, Counterparty quotes3Fixed Income Instruments market condition, pricing mechanism, quoting and settlement conventiona) Instruments by issuersi. Government Bondii. Local Government Debtiii. Policy Bank Bondiv. Commercial Paperv. Short Commercial Papervi. Central Bank Billvii. Corporate/ MTNviii. ABS.b) Instruments by cashflow structures i. Fixed rate bondii. Floatersiii. Option-embedded bondsiv. Convertiblesv. Small-and-Medium Enterprise Collective Notes (SMECN)vi. High yieldvii. Asset-Backed Securities c) Market condition and trading conventioni. Exchange, interbank, and retail marketii. Regulatory regime for the fixed income market place iii. Participants distribution for tradingiv. Investment community distributiond) Specific Interbank market vs. Exchange market differences i. Liquidity and issuanceii. Player participation and risk appetite iii. Leverage usage4Derivatives market condition, pricing mechanism, and trading conventiona) Swapsi. Instrument definition, indices and applicationii. Participants and trading liquidityb) Bond Futuresi. Contract definition and Instrument applicationii. Cheapest-to-deliver and IRRiii. On-the-run bonds
Part 2. Macro Economics, Monetary Cycle, Industry Cycle, Monetary Condition, Supply and Demand5Macro cyclea) Import/Export cycle, Trade Balance, PMI Indexi. GDP and growth contribution ii. Export dependency, market distribution, surplus and TPPiii. PMI relevance, pork price and othersb) Real Estate Cycle i. New construction, sales and existing inventoryii. GDP and growth contributionc) Government-driven Investmenti. Government spending and its hi...