Studies On The History And Development Of Chinese Futures Market

Since modern and contemporary time with the ever-increasing development of different countries' economy and the constant strengthening of international financial link, futures market has shaped a more and more important part in promoting a country's economic development and international financial cooperation. Particularly in recent years virtual economy, represented by futures market as main body, has been increasingly influencing the development of real economy and it relates much to a country's economic and financial safety. Nowadays China's economy grows very fast, industrial structure enhances continuously, financial service field becomes more and more open. Under such circumstances, it is of highly importance and urgency to promote a healthy and quick development of Chinese futures market to improve its market function of serving national economy. Therefore, if the modern Chinese futures market is studied fully and systematically, and if the historical development of national futures market and international futures market are compared with each other to dig out the historical rules and lessens to be learned in such a market, undoubtedly significant historical mirroring value and realistic promoting meaning can be achieved in order to guarantee the long and healthy development of Chinese futures market ever since.The germination of Chinese futures market starts at the late Qing Dynasty. It experiences the hardships of the Republic of China, long-time breaking after the foundation of the People's Republic of China, rebuilding since reform and open-up to the outside world and the re-development at contemporary era. For more than a century the developmental process is closely associated with China's system changes. In effect, it is the epitome of these changes and reflects the constant collision and merging of system demand and system supply. The theoretical point of view of the dissertation lies first and foremost in the system changes and develops thereafter. Chinese futures market is put in a category of systematic economics and its development is studied within such an angle. It analyzes the system foundation of historical development of Chinese futures market, concludes its historical rules and lessons and provides valuable reference to its development. Secondly, based on adequate delving of historical materials and former research and the empirical research method, it systematically and comprehensively studies and analyzes the history and development of futures market in three different historical periods, reveals its birth reason, developmental changes, effect and significance. By summarizing and commenting its developmental rules, characteristics and deficiencies, it makes the futures market in the Late Qing, Republic of China and People's Republic of China become an organically related whole. Systematic and profound research has been made about the period in which the futures market was broken and rebuilt, thus revealing the historical inevitability of rebuilding and developing contemporary Chinese futures market. Thirdly, the dissertation not only vertically analyzes the historical development of modern futures market, but also horizontally studies its functioning mechanism, marketing supervision, market characteristics and deficiencies in different historical periods. Not only modern Chinese merchants' futures market and foreign merchants' futures market, goods futures and stock futures, futures and spot cargo are studied, but also the developmental process, processing mechanism (including market organizational structure, system regulations, trading and marketing) and market supervision (including state legislation, administrative supervision, trade self-regulation) of futures market in different systems are also included. In addition, a comparative study has been made between the development of Chinese futures market and foreign futures market. It analyzes their historical development, studies the real running of the international futures market and concludes the essential factors for the healthy development.Research conclusions are:first, the birth and development of the futures market is not only an important result of Chinese modernization efforts, but also an important sign of modernization, it represents a higher level of modernization. But as an important financial market, the function of futures market serving the spot cargo market fails to be effective suggests the winding and arduous path of Chinese modernization. Second, the system change has a decisive effect on the development of Chinese futures market. Its rise and fall connect closely with the economic system changes. Good system is able to create higher market efficiency, resource utilization ratio and better development of the futures market. On the contrary, bad system is a hindrance, causing lagging-behind or even breaking of the futures market. Third, innovation and supervision on the futures market are very important. As a part of financial market, futures market has its functions of price discovering, risk evading, and resource allocating. It is an important tool for serving the spot cargo and even the entire economic development. China ought to quicken the step of system innovation and build the entire futures products including financial futures and option futures as early as possible in order to promote economic development and enhance economic development level. At the same time, historical lessons should be drawn to strengthen the system construction of marketing supervision so that risks can be controlled to avoid price manipulation and excessive speculation which lead to functional failure and damage to economy. Only through system innovation can Chinese futures market move on the road of success.