(Yicai Global) May 30 -- China Financial Futures Exchange is pushing the listing of two-year Treasury bond futures and researching foreign exchange futures products to tackle global uncertainties in the financial world, according to its chairman.

There are two kinds of Treasury bond futures currently traded on the CFFEX, the five-year and 10-year products, state-backed news portal The Paper cited Hu Zheng as saying yesterday at the Shanghai Derivatives Market Forum.

The domestic and foreign markets are more closely linked now, and the impact of interest rate hikes by the United States Federal Reserve on the Chinese financial market remains to be seen, he added. China's risk prevention and deleveraging policies will also have a significant impact on interest and exchange rates.

Changes in macroeconomic policies at home and abroad may increase fluctuations in future interest and exchange rates, Hu said, adding that demand for risk management will become increasingly intense. This will make the listing of more Treasury bond and foreign exchange futures more significant, he continued.

The scale of the market is growing steadily. In the first quarter, the average daily trading volume was 42,200 contracts a day, Hu said. Institutions made up more than three quarters of Treasury bond holdings, the highest percentage among all domestic futures varieties.

Editor: James Boynton