China's credit default swap (CDS) market launched with great fanfare at the end of October. But three weeks on, market participants say the trades were just "testing the water" and no deals have been conducted since. Trades that were done on the day suffered from a lack of two-way flow and a wide dispersal of pricing.
The interbank CDS market launched on October 31 with 15 separate transactions worth a notional 300 billion yuan ($44 billion). Traders now say the deals were conducted to test the