Abstract

This paper intends to review the necessity of Korean investment in China according to the changes of Chinese futures market. Chinese futures market grows rapidly and it is getting more important in the international futures market. In recent years, the Chinese government has tried to enlarge the opening of futures market to enhance the level of internationalization. The Korean government can ask China to open the futures market of China through the follow-up negotiation between Korea and China. In other words, the Korean government has to try to include futures market in the follow-up financial agreement. The Korean companies can establish joint stock futures trading companies in China by holding shares within 49 percent. A joint stock company can be an important route into China. And it is possible that the Korean companies invest in China through Hong Kong to use CEPA between China and Hong Kong. Namely, Korean companies can found joint stock companies with Chinese companies after setting up a corporation in Hong Kong. Finally, Korean companies should prepare investment route through the cooperation with Chinese companies according to the opening individual futures market like crude oil futures.

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