Study Of China's Gold Futures Market Functions

Gold futures market plays an outstanding and important guiding role in perfecting not only sold spot market but also the functions of monetary market and foreign exchange market. It also has great significance in enhancing the international appeal of our country's financial markets and in enhancing the nice and fast development of the national economy. At present, the development of Chinese gold futures market has entered its crutional period of futures market system composed of futures market and spot market expands steadily. However, there still remains a series of important theoretical and realistic problems to be further researched into, especially the problem of how to comprehend and to further the perfection of the functions of Chinese gold futures market, to enhance the status of it in international futures market, and to fulfill its functions on national economy.On the base of the function theory of the futures market , this paper presentates the formation and the development of the major international gold futures market. And it also analysis the markets function.Morever, it summed up the key factors of the functioning performance. According to Chinese current political, economic and social conditions , the gold futures market in China should have the basic features and derived features. It conducted an empirical analysis to explore the function of Chinese gold futures efficiency. On this basis,this paper explored constraints factors of the of Chinese gold futures market functioning, and devoted a reasonable policy recommendations.The first chapter is esordium. It statements the background and significance of the paper.It summaries and comments on the relevant literature. It provides the main problem on the based of outstanding issues. It also briefly describes the structure of this paper, the main innovation and the research methods.The second chapter reviews and summarizes the basic theory of the function of Chinese gold futures market. It provides a theoretical guidance for the whole paper. It mainly researches for hedging, price discovery theories. It also analyzes the test methods of the function of the gold futures market efficiency. All of this are theoretical groundworks to research the efficiency of Chinese gold futures market functions.The third chapter summaries the functions of the international gold futures market.It statements the major gold futures markets in the world including the NYMEX, COMEX, TOCOM and futures market in Brazil. It simply summaries the functions of gold futures market into two correlated types: one is fundamental functions and the other is deviatory ones. Concretely speaking, the former includes hedging, price discovery, risk hedging and speculative arbitrage; the latter includes stabilizing monetary system, reining prices and enhancing national competitiveness. It believes the necessary factors are important roles for the development of Chinese gold futures market such as the full development of the market economy, the highly developed financial sector, the sound trade regulations, the information technology and the strong guarantee of monetary policy.Chapter IV makes a systematic theoretical analysis on the basic economic functions of Chinese gold futures market on the perspective of the gold industry .It also takes a comprehensive analysis on the derivative function of Chinese gold futures market on the perspective of the gold market, Chinese market economy, national economic security, global economic development strategy .Chapter V is the empirical research on the functions of Chinese gold futures market. It believes that hedging plays an important role in Chinese gold futures market.It can reduce the participants'risk in the market. However, The price discovery function has not been clearly reflected. Gold futures prices in domestic can't lead the spot prices. The international price of gold futures greatly impacts on the domestic. It also briefly analysis the functional efficiency of the deviatory function of Chinese gold futures.Since the foundamental function is not fully, the deviatory functions were largely restricted on speculative arbitrage, stabilize prices and improve the Chinese position in world gold pricing .Chapter VI makes a factor analysis affecting the founmental functions and deviatory functions of Chinese gold futures market. The main reason is the significant deficiencies of factors such as the validity of information, the spot market, market supervision mode,the structures of market participators and market scales, etc.Chapter VII makes some policy suggestions of how to further enhance the exertion of functions of Chinese gold futures market. It touches four aspects. Concretely speaking they include stock market, law factors, international cooperations and system innovations. Stock market and futures market will mutually affect each other and develop and both will mutually prosper. We Should establish a comprehensive system of the gold industry to provide basic protection. The second ne is to draw up the law of futures, to strengthen the construction of market supervision system, to choose proper supervision mode and to crease fine supervision surroundings. The third one is to strengthen international cooperations and to seek more profits for Chinese economy. The development of Chinese gold futures market should be aimed at enhancing the position of it in the international gold market ,at adding more rights of speaking, by strengthening international cooperations and mixing together the world. The fourth one is to draw into the transaction system of being market merchants, improve the CTA system to ensure healthy market development.