The Basic Operation Scheme And Technical Analysis Of Chinese Enterprise Hedging

Starting from China's accession to the WTO, exports became the driving force behind China's rapid economic growth. But with the acceleration of economic growth, the concepts about China began to be maliciously publicized, China-related commodity prices began to rise significantly, there's also growing appeal for the appreciation of the RMB.With this background, the management of Chinese enterprises began to become difficult, the fluctuations of corporate profits became horrific. Finding some methods that can reduce the volatility of the cost of Chinese enterprises and increase expected profits becomes increasingly important. Therefore hedging as a common tool which is used to reduce price fluctuations and even reduce the cost (although high-risk hedging) is also becoming increasingly important.Based on the review of traditional investment theory, this article briefly introduced the background and significance of hedging; through analyzing the failure of zinc hedging of Zhuzhou Smelter it summed up the basic operation scheme of Chinese corporate hedging, and on this basis it introduces the necessary methods of technical analysis of hedge in detail; At the end, by using the methods proposed in this article to elaborate the failure case of Eastern hedging in order to test the effectiveness of them.In the analysis of Zhuzhou Smelter case, this paper systematically proposed a method and the basic steps of Chinese enterprises hedging, particularly proposed possible methods used by international hedge fund enterprises in different perspective to enrich the hedging problem Ideas. In the process of conducting technical analysis, we found that an intermediate result can be used to analyze the possible extent of subject matter of hedging and derivatives prices and thus increasing an analysis way of the successful implementation of hedging. Using the Black - Scholes - Merton model, we broke through the traditional use of the method of option price sensitivity parameters instead of modeling directly and used the model in the case of Eastern Airlines to obtain certain results .