Since Deng Xiaoping declared in 1982 that China should build socialism with "Chinese characteristics", China has cautiously kept learning, in almost every domain, from the experience of the developed countries but never abandoned the desire to establish its own "Chinese standards".
Chinese standards have recently been set up in the market documentation required for onshore over-the-counter (OTC) financial derivatives transactions in China. This is the result of the publication of the China Inter-bank Market Financial Derivative Transactions Master Agreement by the National Association of Financial Market Institutional Investors (Nafmii), the self-regulatory industry organisation mandated by the People's Bank of China (PBOC) – the Chinese central bank.
This new master agreement has been welcomed as it merges and replaces the two existing master agreements: the 2007 version of the Nafmii Master Agreement and the National Inter-bank Foreign Exchange Market Renminbi-FX Exchange Derivatives Master Agreement (CFETS Agreement).
It therefore ends the worrying...