At a current futures discussion board in Zhengzhou, capital of Henan province, the nation’s prime securities regulator stated that energetic efforts will likely be made to introduce novel futures merchandise, deepen services innovation, and provides full play to the function of futures to higher serve the actual economic system.
China has repeatedly launched product futures overlaying the primary industries of the nationwide economic system that may meet enterprises’ hedging wants, guarantee steady costs and provides, and improve the resilience of the nation’s trade chains.
Up to now 10 years, the brand new listed varieties in China’s futures market have exceeded the whole variety of varieties within the previous 20 years. Notably, the event of pure terephthalic acid, methanol and different intermediate merchandise futures has enhanced the worldwide enchantment of the home market. China’s futures market has arrange a supply system that may keep away from excessive value fluctuations. In recent times, such excessive occasions as unfavorable oil costs and sharp nickel value rises on the London Steel Trade or different worldwide futures markets, which have precipitated critical injury to the actual economic system and monetary market, often happen not lengthy earlier than the contract expires, and the present margin system within the worldwide futures market supplies alternatives for predatory buying and selling. In China, the margin will likely be raised because the contract expiration date approaches, growing hypothesis prices and making certain the sleek operation of home futures costs.
As well as, ever-strengthened rules have helped China’s futures market keep away from extreme hypothesis. By adjusting margin, fee and rise or fall limits, China has actively regulated futures costs and diminished value fluctuations. Nevertheless, China’s futures market nonetheless faces issues similar to restricted selection and scale, unreasonable participant construction and inadequate world pricing energy.
China ought to promote the additional openness of its futures market, strengthen its exterior enchantment, and enhance its narratives in world commodity pricing. The reform of the QFII and RQFII methods must be additional superior to rationally introduce abroad capital, and make sure the clean move of home and overseas elements and sources. Efforts must be made to advertise the innovation of product and enterprise fashions, and based mostly on growth methods similar to inexperienced finance and “double carbon” objectives, and the danger administration expertise of conventional varieties, modern varieties similar to carbon emissions and commodity index must be launched.
The nation ought to train efficient however reasonable margin rules to keep away from extreme fluctuations whereas curbing market speculations.