ABA Capital Management founder and CIO Boaz Weinstein. Wow. I got to know right off the bat, what was a trader like you doing this morning.>> So, I had made plans over the weekend. I was the night before getting ready to buy the market. I asked my execution trader what was happening at 7:02.You know, we get in in the bond market a lot earlier than the stock market and boom, 707 the headline comes out and all those plans went to not because the market went up two plus% immediately. >> What were you going to ...

Core Viewpoint - The development of futures, derivatives, and asset securitization is essential for establishing a well-structured financial market system and accelerating the construction of a strong financial nation, which will enhance financial product diversity, improve market completeness, and strengthen financial services for the real economy and risk management capabilities [1] Group 1: Derivatives Market - Derivatives, including futures, are crucial financial tools in modern markets, serving functions such as price discovery and risk management. In 2024, the trading scale of derivatives in China's interbank market is expected to exceed 230 trillion yuan [2] - Interest rate derivatives are primarily used for hedging and risk management, helping institutions mitigate risks during periods of declining interest rates. For instance, they have prevented potential net value declines and asset sell-offs [2] - The development of the derivatives market in China is lagging, with the daily trading volume of interest rate derivatives compared to the outstanding balance of government bonds at only about 0.8%, while the same ratio for USD and EUR is approximately 8%-9% [2] Group 2: Regulatory and Market Development - To address inherent risks in economic and financial activities, it is necessary to enhance the management level of financial services and foster robust financial institutions, promoting a more complete, inclusive, and efficient derivatives market [3] - Optimizing regulatory methods by allowing more qualified entities, such as insurance companies and banks, to access derivatives qualifications will diversify participants and trading scenarios [3] - Strengthening regulatory capabilities is essential to avoid systemic risks, improve transaction reporting, central clearing, and margin management, thereby enhancing transparency and regulatory effectiveness [3] Group 3: Asset Securitization - Asset securitization plays a vital role in revitalizing existing assets, stabilizing macro leverage ratios, optimizing asset-liability structures, and broadening financing channels [4] - It allows the conversion of existing assets into liquid financial products, enhancing market depth and meeting investor demand while helping financial institutions provide financing without expanding their balance sheets [4] - Since 2014, China's asset securitization market has entered a phase of normalized development, with annual issuance reaching around 2 trillion yuan, although issues such as unclear underlying legal relationships and high issuance management costs hinder market depth [4] Group 4: Future Development of Asset Securitization - The asset securitization market has significant potential during China's economic transformation, necessitating a focus on serving key sectors of the real economy and enhancing market infrastructure for long-term healthy development [5] - It is crucial to improve the legal structure and supporting arrangements of the market, ensuring clear legal relationships and optimizing issuance management mechanisms [5] - Strengthening investor participation and cultivating the secondary market are essential, with efforts to diversify investors and enhance the asset securitization valuation system [5]