Research And Design Of Hedging System For Entity Enterprises

As the world’s second largest economy, China has become the manufacturing center, with huge consumption of energy and raw material. With the integration of global economy, the volatility of the prices of various commodities have increased significantly, commodity price volatility cycle has also been shortened. Hence, various sectors of the economy including manufacturing, agriculture, and even the financial sector are facing different levels of price volatility in China. On the other hand, the hedging function provided by the futures market can greatly reduce the adverse consequences triggered by price changes.This paper mainly discusses the design of the SHCIFCO hedging system. The emergence and development of the futures market has always been closely linked with the real economy. It can be said that the fundamental starting point of the futures market is for the real economy. In the end of2011, the Central Economic Working Conference stated that the financial services should better serve the real economy. Also at national financial working conference held in Beijing on January6,2012, Premier Wen Jiabao stressed the need to adhere to the essential requirement of the real economy and the financial services should firmly grasp this solid foundation for the development of the real economy and take different measures to ensure that the money to invest in the real economy. In this context, with fully referencing to the successful experience of the hedging business at home and abroad and development of innovations, combined with the reality of Chinese enterprises and the futures market, SHCIFCO has tried to develop the customized hedging system, which is bound to help the domestic corporate customers using the futures market to avoid risks and to achieve sustainable development.Over the last decade, many companies have continued to invest in information technology, expecting to increase profits and improve the business environment. The potential impact of the rapid development of information technology is no doubt. The research objectives of this dissertation are to state the business entities that need to be considered in designing hedging management system as well as the general design modes of hedging management system, including the software platform incorporated with company hedging management structure, innovative use of workflow automatically to ensure the implementation of the hedging orders, and the application of quantitative analysis methods and the scientific evaluation of hedging performance. In the future, based on the needs of the business development and customer feedback this junior hedging system will be updated further to include the industry varieties module, the hedging policy module, risk control module and Exchange docking system module etc. In general, to develop customized hedging systems that meet specific circumstances has become a trend in this area of research. SHCIFCO will continue to explore new concepts of corporate hedging theories, and to strive to help enterprises to achieve better risk-averse and sustainable development target.