Volume 72, Number 1

April 1997

Derivatives and Dialectics: The Evolution of the Chinese Futures Markets

Victor L. Hou

Recently, financial papers have been inundated with accounts of the heady risks and dizzying consequences of derivatives gambling gone bad. Losing bets have caused the demise of a centuries-old bank. Elsewhere, corporations worldwide have been dealt severe losses, and governments have gone bust. Yet conceptually, derivatives are hardly new.