Futures Market On Advancing Marketisation Of China Grain Circulation System

Abstract: A series of gradual reforms of grain circulation system have occurred, improving market efficiency is its objective. Marketisation has been the main point of grain circulation system of china. We have started our grain circulation system reform since 1978, but it is still on the route to success. Except many defects in the spot market, the lack of efficient agricultural product futures market price signal to guide the production and management of grain is also an important reason for the reversion of the reform. After the entrance into WTO, the linkage between global and domestic market larger and larger. So it is imperative to do some research in the utilization of agriculture products futures market, hoping it will play its innate functions, such as price discovery and hedging, in the newly round grain circulation system reform in China. The initial reason for the establishment of futures market in China is to stabilize grain production and circulation. The futures market can not solve all the problems confronted in the course of the reform, but it can play its unique role in the price discovery and price risk hedging. The paper is divided into six parts. The first part is the chapter one, also is the preface of paper, including the research background, aim, contents, framework, research method, innovation. The second part makes review of our country's grain circulation system reform, and analyzes the reasons for the reversion of grain circulation system reform in our country. The third part analyses the reason why our country's grain circulation system reform isn't succeed. The forth part introduces the risk of grain price and the function of futures market .The fifths part analyses futures market's effect in our country's grain circulation system reform. The sixth part puts forward some policy suggestions to promote the newly round grain circulation system reform by fully utilizing our country's agricultural product futures market. In a word ,the dissertation offer a new way to grain circulation system reform in our country., at this time we should make futures market better than before.