Chinese Futures Market Is Currently The Main Problems And Developing Countermeasures

Compared from current domestic and international situations and operation rules of futures market, this paper ascribes the reasons to four main respects, which influence on the function and the development of domestic futures market. Corresponding settlement measures are put forward.Firstly, the paper briefly introduces the basic conceptions and evolution of futures market development and induced that the basic functions of futures market is price discovery and hedging. Using Cobweb Theory, Storage Theory, Static and Dynamic Hedging Theory to expound the functions of futures markets and proving the futures market plays an important role in dissolving national economical risks.Secondly, according the current situation of Chinese futures markets and the inferiority compared from international futures market, this paper conclude four main reasons that imperfect legal and supervisory systems of futures market, less futures products, nonstandard operations of brokerage companies and various restrictions on domestic or oversea hedging deals, which lead our futures market to small scale, excessive speculation and high risks in Chinese futures market. All those above reasons restrict the development of Chinese futures market and keeping the futures market from full function.As an important part of market economy, futures market plays an important role in market economy. Having analyzed the main problems in Chinese futures market, this paper brings forth corresponding measures to each respect of the problems: To perfect legal systems in futures market and establish supervisory system by reference to three-level supervisory system in international futures markets . To accelerate the reformation of futures products' listing by establish market-oriented listing mechanism and create new products to meet market participants' hedging needs. Reinforce company organization management, perfect internal control system so as to control futures risks and strengthen futures companies themselves. Cultivate institution investors and loose restrictions on abroad hedging deals of state-owned enterprises to promote the function of futures market. At last the paper outlooks the internationalization of Chinese futures market.