Price Formation Mechanism Of China

China is a big agricultural country, in terms of people's lives and the development of national economy, agriculture is very important. Therefore government attaches great importance to food prices, especially rice prices. Rice prices also affects people's nerve. However, in recent years, sharp fluctuations in international grain prices, Chinese many food crops have also been greatly affected. However, under the existing conditions of price mechanism, whether international rice price volatility will have a great impact on the price of rice China? Whether the existing pricing mechanism of rice meets the needs of current economic development situation or not, these problems should be solved. Of course, our current pricing mechanism can promote the rice production and the country's food security, also can improve people's living standards .However, it is undeniable that, with increased productivity and economic situation continues to develop, it obvious shortcomings of the mechanism, How to reform and improve China current rice price mechanism as an important issue.This paper reviewed the development process of Chinese rice price mechanism and the background of the current rice price mechanism, based on the comparison through the vertical depth analysis of the advantages of the current rice price mechanism and the main existing problems and defects, raise our country's current rice price mechanism must be reform. Through horizontal comparison, the country's rice price mechanism and the three major international rice price mechanism to compare the price of rice found in the existing mechanism of the advantages, but also found that our existing mechanisms are inadequate with Chinese actual situation, by drawing on international experience, raise the corresponding reforms. At the same time, combined with current economic development situation, and actively introduce the current development and improvement of financial instruments. By analyzing the futures market, several major features found in the function of the futures market pricing mechanism for the improvement of rice have a significant role, through empirical study; found that the price discovery function of futures markets, spot markets can play a very good guide. According to the theoretical knowledge of the futures market, you can know that futures hedging feature that allows farmers to guide the production, the supply of rice to a certain extent. Some research through this column was obtained, to optimize the formation mechanism of rice prices. In the conditions of without affecting the food security, we can relax the import and export of rice because the control of rice is too strict, when the government set the minimum purchase price, it should refer to futures market prices and other countermeasures.