Research Of Factors And Policy Of Agricultural Futures Market’s Efficiency In China

Chinese agricultural futures market in China has been born since1993,.The first agricultural futures market is Zhen Zhou futures exchange, China’s agricultural futures market has gone through the complicated course of development during almost20years. Because the process of our country agricultural industrial reform is accelerating, and joining WTO, the agricultural price is more easy to be influenced by both domestic and international market.The effects of the agricultural producer and processing enterprises will face a huge price risk, and also put huge threat on the vital interests of farmers. Therefore, our country should establish the futures market system of agricultural products in China, and must improve the efficiency of agricultural futures market. The more efficiently the function of agricultural futures market plays, the more modern agricultural industry in China will be. This can also help to promote Chinese characteristic socialism market economy.Measuring our futures markets is the key to judge whether the function of agricultural futures markets are fully effective play. Among them, the agricultural products the function of futures markets are price discovery embodied in two aspects include agricultural products and agricultural products hedging. The price discovery is the core, is also agricultural futures market the basis of existing and developing; Hedging can make agricultural price risk down, and whether agricultural product price risk can be effectively transferred is also depended on how effectively price is discovered. Therefore, the efficiency and the factors affecting the policy research of agricultural futures market can do great help for us to understand and know the price discovering and agricultural products hedging, which can also promote Chinese agricultural futures market.Europe, the United States and other developed countries in the development and improvement of the agricultural futures market make use of agricultural futures market for the development of agricultural industry to provides a good hedge mechanism. In our country’s establishment and development of market economy, we should vigorously develop agricultural futures market; make use of agricultural futures market for agricultural modernization services, especially in the existing conditions, to improve agricultural futures market efficiency. We should also make full use of agricultural futures market development for our country agriculture, rural areas and farmer’s service.The paper firstly defines the related research concept. This paper discusses the agricultural futures market’s price discovery function and the realization of the function of hedging, and review the development of agricultural products futures market in China and agricultural futures market of our country is analyzed by paper. Then paper points out the problems in the operation of the market. Depending on the price theory, hedging theory, market efficiency theory, economic cycle theory, multinational company’s theory and so on, we raise Chinese agricultural futures market operation and agricultural futures price influence factors of the thorough analysis. Finally, on the basis of analysis on the influence factors and agricultural futures market efficiency, paper put forward some constructive Suggestions about how to improve the efficiency of agricultural futures market in China.