In nearly 20 years of fostering and developing the process, China’s futures market in the exploration and development, continuous improvement in practice, its market breadth and depth of the growing expansion. With the futures market to participate in the main body of the tireless efforts as well as varieties of futures markets gradually improve the system, the futures market price discovery and hedging functions increasingly obvious that the national economy’s ability to serve gradually increased, and in related industries and improve price formation mechanism, integration industry resources, streamline the upstream and downstream industry chain relations has played a positive role; in enterprises to take advantage of the futures market to improve its risk management system, improve risk management and market competitiveness played an important role; in perfecting China’s market economy system, the formation of commercial credit mechanism to promote the circulation of commodities has played a special role; in guiding farmers and agricultural enterprises to take advantage of agricultural products futures information adjustment of agricultural planting structure, to participate in agricultural futures hedging and stable agricultural production has created favorable conditions.

First of all, the futures market price discovery has initially become operational, has been increasingly used by the main micro-economic.

In recent years, as China’s futures market has been continuously enriched varieties, market liquidity and market participants to continually enhance the continuous increase in China’s futures market price information and the spot market, the international market correlation increased to more accurately reflect market supply and demand and expected, for producers and operators have a strong guidance, in optimizing the structure of the market allocation of resources, improve the efficiency of production and management role clearly.

Today, many production, trade, processing, consumption enterprises began to use futures prices to organize the procurement, production, logistics and marketing activities. In non-ferrous metals industry and the soybean industry, the vast majority of enterprises are expected to track the use of market-related futures contract prices of varieties, such as a listed company Jiangxi Copper, Yunnan Copper, such as the “weighted average price on the period” as the pricing benchmark contract, Ningbo, Zhejiang Kim Kwang-used “Basis + DCE soybean meal futures prices” approach to solve the cash trade, pricing problems and deficiencies in the way of trade.

In agricultural products sales, soybeans, wheat, maize, rubber, cotton futures prices have also become the Northeast, North China, Yunnan and other places of farmers and agricultural industry organization of agricultural production, to adjust planting structure, determine the sales plan, an important lock is expected to profit basis. For example, the northeast and Yunnan farmers plastic full reference to the futures market of agricultural information, and grasp the timing and sales price, to achieve greater revenue growth; Yunnan Nongken delivery in recent years through the futures market than the spot market selling prices higher than the average 1,000 yuan per ton , the reclamation area in 2005 per capita income of 10,700 yuan, compared to 2000 increased by 69%; in 2006 in Heilongjiang Provincethe farmers in accordance with expert advice, decided a variety of corn, soya beans less, when structural adjustment through the cultivation of increasing the income of farmers over 10 billion .

Secondly, more and more enterprises began to use this financial instrument to circumvent the futures price volatility, a sound risk management system.

In recent years, with economic globalization and the deepening of China’s industrialization process, the global bulk dramatic fluctuations in commodity prices on China’s economic development entities constitute a tremendous impact. Market risk in the face of various types of enterprises to take advantage of futures risk management tools for the needs and growing awareness, more and more enterprises have begun to actively participate in the futures market for hedging, to avoid risks, including COFCO, Minmetals Nonferrous , Jiangxi Copper, China’s Chalco, PetroChina Fuel Oil Company, Yunnan Agricultural Reclamation and many other large state-owned enterprises, as well as beauty appliances, Ningbo Jintian Copper and other private enterprises have been actively involved in the use of futures market risk management ranks. According to statistics, China’s copper processing more than 80% of enterprises are involved in copper transactions; aluminum consumption enterprises to gradually enter the market, especially small and medium enterprises enter the market enthusiasm markedly enhanced; a large number of power plants, ceramic plants, ocean shipping companies have to participate in fuel oil markets. In the futures market through the operation of enterprises can be transferred through hedging the risk of price changes, so as expected the price to sell products, can also be purchased by the expected prices of raw materials, effectively promoting the long-term stable development of enterprises.

Third, the futures market to enhance the market competitiveness of enterprises, and promote the relevant industrial excellent spot improvement in the level of marketization.

The development of futures market for the production and operation of enterprises on the basis of price trends and market demand has created conditions to organize production and improve the production of scientific and planning. China’s participation in the futures market to the non-ferrous metals industries and enterprises in the signing of trade contracts, should refer to the price of non-ferrous metals futures markets, non-ferrous metal futures prices have become non-ferrous industry pricing benchmark prices of domestic non-ferrous metal production, processing, circulation and consumption enterprises play a leading role; some of the needs of producers of raw materials, but also the use of futures markets, raw materials procurement management, lock procurement costs and shorten the storage time, reducing circulation costs, the achievement of the expected profit has been made better the effect of, and even some companies attempt to use the futures market to achieve “zero inventory” management.

In the futures market to promote the standardization of contracts, the related industry standardization of the spot have been greatly improved, and many have been approved by the Stock Exchange delivery brands in the industry to enjoy a relatively high degree of credibility and enhance its intangible assets, increased industry-wide the importance of product quality; through the Futures Exchange, the industrial chain of the parties closer together, forming a stable relationship between production and marketing to improve the performance of the contract rate, and promoted the circulation of the spot market order. Copper, aluminum and other non-ferrous metals futures earlier listed species, effectively promoted the non-ferrous metals industry, the market-oriented reforms, for non-ferrous metals enterprises change their operating mechanisms, straighten out the relationship between ownership and actively participate in market competition and industrial restructuring, improve the business and non-ferrous metals industry competitiveness in the marketplace have had a role can not be ignored. In China’s accession to the World Trade Organization, non-ferrous metals industry to adapt to the international market faster, and become a response to the international market shocks the strongest, the highest degree of marketization, the most internationally competitive industries.

Fourth, the futures market in the service “three rural” respect the functions and role of beginning to show.

The establishment of the futures market for China’s agricultural production and provide a smooth channel for information and logistics. Corn, wheat, soybeans, cotton and other major agricultural products has basically traded in the futures market, forming a series to reflect the supply-demand relationship of price signals, and through the futures market strong rapid dissemination of information systems throughout the country. Especially in recent years, Dalian, Zhengzhou Futures Exchange etc. carried out to the countryside to promote futures information, free training farmers learn how to use futures information, to gain prompt access to their agricultural market price information, scientific organization of production, reasonable sales, protect the interests of farmers , in the northeast, north along the achieved good results. For example, Zheng suppliers strong gluten wheat futures listed species, for the popularity of the promotion of quality strong gluten wheat national standards to guide farmers to adjust planting structure has played an irreplaceable role, after several years of practice, in the futures market under the guidance of high-quality wheat in the Central Plains and the surrounding areas have formed a large-scale cultivation.’s “Chimura 10,000 market services project” allows farmers to more timely understanding of soybeans, corn and other agricultural products market, for farmers to adjust the timing andTaking advantage of the planting structure has a very active role in guiding. Heilongjiang Nongken April each year will be the analysis of the futures pricesto the Group’s soybean acreage farms release guidance, and decentralized management of the farmers have learned to adjust according to futures prices cultivation surface structure. Futures tools, but also effectively promoted the “agriculture to order” the development, forming a “mode”, “White Horse Lake mode,” “Galaxy mode” such as “orders + futures” in agricultural production and business model, an effective solution the agricultural commodities from the products to “jump.”

Overall, China has been in Shanghai, Zhengzhou and Dalian, the three commodity futures exchanges, futures 165 companies, 19 traded the people’s livelihood of the bulk commodity futures varieties, the establishment of coverage of agricultural products, metals and chemical industries such as energy commodity futures Variety system. Futures industry as an emerging financial services industry has taken shape, the futures market price discovery, risk aversion and the function of resource allocation in the national economy began to play an increasingly important role. These achievements show that China’s futures market has been obvious features to play, has fully demonstrated the need for the establishment of futures markets. The establishment of the futures market for the market economy and improve the national economy, stable and healthy development is indispensable, the futures market can and will continue in China’s reform and opening up the historical process of the great play a unique and important role.

At present, the trend of economic globalization has been immutable, China’s economy has been integrated into the world of reform and opening up is that we established development strategies. In an international environment, does not have a vibrant financial system can only be a passive commitment to financial risks, the absence of a vibrant financial system, our enterprises would be difficult to play their own competitiveness. “Development is the last word”, in the economic globalization today, can only continue to improve their own competitiveness in the international market in order to take the initiative in order to remain invincible.

In the economic globalization trend, the domestic futures market in the face of competitive pressures to gradually moving towards greater openness in the open to make full use of China as a bulk commodity production and consumption of the advantages of large countries, to enlarge and strengthen itself, to raise its international status, to get out of the domestic futures Futures prices by outside contain price movements, changes in foreign futures markets become a “shadow market” of the situation, the establishment of the “China price” influence.

In recent years, China’s futures market has entered a normative orbit of healthy development, market breadth and depth of the trend continues, it formed a relatively complete system of commodity futures varieties, the rapid increase in size of the market, continuously improve the operation of the market system, the rules of the system continuously sound, more rational market participants mature, the industry as a whole risk prevention ability to continuously upgrade, these are features of China’s futures market to play a role in the further laid a solid foundation.

In the recent financial market crisis, China’s futures market risk prevention and control capabilities withstand the recent market fluctuations severe test. This fully demonstrates that China’s steady development in recent years, the futures market is the right strategic decision proved that we have striven to strengthen the basis of futures market system building, strengthening the market mechanism of risk prevention and control measures are effective. After the financial crisis faced the test of the test, China’s futures market has been basically have to further accelerate innovation and development, to participate in international competition, a solid foundation.

Therefore, whether it is from China’s futures market changes in the external environment, or from the inherent basis for the development, China’s futures market, if we can further accelerate innovation, improve the structure, moderate and opening up, the expansion of the scale, it is possible to seize this rare historic opportunities and give further play to China’s futures market, especially in commodity futures markets function, becoming the world’s major commodity markets play a vital role in the pricing center, made in the international commodity markets on the right to speak.