An Analysis On Function Efficiency Of Chinese Futures Market

The futures market is very important in the development of economy, which can be proved from the development of futures markets in developed countries. And we can also find that futures market is very helpful for the development of Chinese economy and market system. During the previous ten years, the function of futures market has been the hotspot among Chinese government, investors of futures market and researchers. From the early discussion about restraining over-speculation to today' s talk on the opening of futures market and creating of price making center. However, there is still not research about the efficiency of Chinese futures market function.Our study summarizes the evaluation methods of futures market function efficiency, and takes copper and soy as examples to make empirical analysis on Chinese futures market function efficiency. We conclude that copper and soy futures can be used as risk avoiding tools. Besides, the efficiency of prices on the near future contracts is quite high. Furthermore, we find that there is no obvious arbitrage chance in Chinese copper and soy futures market. In addition, we also analyze how is the futures functions is used in the real market. Combined with the statistical results we have discovered, this article gives some suggestions focusing on how to enhance the function efficiency of Chinese futures market.