Treasury bond futures risk controllable
Public information shows that there is indeed a situation in which treasury bond investment drives economic growth. From 1998 to 2002, my country issued a total of 660 billion yuan of long-term construction treasury bonds. Treasury bond investment drives economic growth by 1.5 to 2 percentage points every year, creating a total of 7.5 million jobs. China's balance sheet is very healthy, and the potential for issuing treasury bonds is also very large.
If it is more difficult to increase the issuance of central government bonds, in the short term, it is possible to increase the quota of some local bonds so that local governments can issue more bonds to stimulate economic growth.
China Financial Futures Exchange (referred to as "CICC") has made full and detailed preparations for treasury bond futures, and existing contracts are also feasible.
Treasury bond futures are a very mature product in the international arena. The contract design itself should not be a reason for not launching Treasury bond futures as soon as possible. These contract designs can be perfected while working.