Zhu Yuchen, also known as Eugene Zhu, has been appointed general manager of the new Shanghai Financial Derivatives Exchange, according to a report by Reuters. Zhu was previously head of the Dalian Commodity Exchange, which trades agricultural futures.
The derivatives exchange, jointly owned by China’s three futures exchanges and two stock exchanges has not been formally launched yet. It is expected to offer its first product, stock index futures, late this year or early next year and will ultimately offer other financial derivative products, including currency futures (see Squawkbox, January 23, 2005).
Financial derivatives were traded in China in the early 1990s but were banned after a scandal in Treasury bond futures on the Shanghai stock exchange caused heavy losses of state assets. The government legalised financial derivatives for the first time last October.