Group 1 - The China Securities Regulatory Commission has approved the registration of monthly average price futures for linear low-density polyethylene, polyvinyl chloride, and polypropylene at the Dalian Commodity Exchange, marking the first cash-settled futures in the domestic commodity futures market [1] - The newly introduced monthly average price futures will use the arithmetic average price of the underlying assets over a month as the settlement basis, providing a risk management tool for industries that require stable long-term procurement prices [2][3] - The contract rules for these futures are designed to meet the industry's need for monthly average price trading while considering market risk prevention, enhancing price stability and fairness [2][3] Group 2 - The introduction of these futures is expected to enrich the product structure of China's futures market, stimulate market vitality and innovation potential, and improve the resilience of supply chains in the industry [3] - The three chemical products are significant in the plastic chemical sector, with China being a major producer and consumer, facing frequent price fluctuations due to various market factors [3] - Companies have expressed that the monthly average price feature will provide a more direct and precise risk management tool for average price trading, enhancing overall risk control strategies and operational stability [4]

Group 1: Policy and Market News - The State Council executive meeting deployed measures to gradually implement free preschool education, requiring local governments to refine work plans and allocate subsidy funds [2] - In the first half of the year, the national fiscal revenue was 11.56 trillion yuan, and tax revenue increased year - on - year for three consecutive months. Fiscal expenditure was 14.13 trillion yuan, a 3.4% year - on - year increase. The third batch of 6.9 billion yuan in trade - in subsidy funds has been issued, and the remaining 6.9 billion yuan will be issued in October [2] - The CSRC approved the registration of linear low - density polyethylene, polyvinyl chloride, and polypropylene monthly average price futures on the DCE, which will be the first cash - settled futures on the DCE and the first monthly average price futures in the domestic commodity futures market [2] - The DCE restricted the daily opening positions of non - futures company members or clients in certain coking coal futures contracts from July 29, and the GIE restricted the daily opening positions in the lithium carbonate futures LC2509 contract from July 28 [2] - The GIE is promoting the R & D of photovoltaic module futures with a brand delivery system and is also working on the R & D and listing of platinum, palladium, and lithium hydroxide futures, which are expected to be listed this year [2] Group 2: Commodity Market Performance - Key commodities to focus on include urea, coking coal, PVC, asphalt, and soybean meal [2] - In the night session, different commodity futures had various price changes and position - increasing ratios [2] - In terms of sector performance, precious metals had a 28.07% increase, followed by non - ferrous metals (19.63%), coal - coking - steel - ore (15.62%), etc. [5] Group 3: Asset Performance - For major stock indices, the Shanghai Composite Index had a daily decline of 0.33%, a monthly increase of 4.33%, and an annual increase of 7.22%. Other indices like the S&P 500, Hang Seng Index, etc., also had different performance [7][8] - In the fixed - income category, 10 - year, 5 - year, and 2 - year treasury bond futures had different price changes [8] - In the commodity category, the CRB commodity index, WTI crude oil, London spot gold, etc., had their respective daily, monthly, and annual price changes [8] - Other assets such as the US dollar index and CBOE volatility also showed different trends [8]

1. Report's Industry Investment Rating No information provided. 2. Core Viewpoints of the Report - In commodity trading, price volatility is the core risk affecting market stability and corporate operations. The Dalian Commodity Exchange recently solicited opinions on monthly average price futures contracts for three major chemical products, aiming to enhance the efficiency of the futures market in serving the real economy and meet the risk management needs of enterprises [2][8]. - Monthly average price futures contracts are innovative financial derivatives that help smooth price fluctuations caused by short - term changes in market supply and demand, and have unique significance in risk management, market pricing, and industrial chain stability [3][18][22]. 3. Summary by Relevant Catalogues 3.1 Monthly Average Price Futures Contract Preface - Price fluctuations in commodity trading significantly amplify corporate operating risks. The Dalian Commodity Exchange's solicitation of opinions on monthly average price futures contracts for LLDPE, PP, and PVC aims to serve the real economy and meet enterprises' risk management needs [2][8]. 3.2 Design Key Points of Polyolefin Monthly Average Price Futures Contract Rules - Monthly average price futures are contracts settled based on the average price of the underlying asset within a month. The contract codes for polyethylene and polypropylene monthly average price futures are "L contract month F" and "PP contract month F" respectively [3][9]. - The trading unit, trading time, handling fees, margin, price limit, etc. of polyolefin monthly average price futures contracts are consistent with physical delivery futures contracts. The main differences are the cash delivery method, the number of contracts, and the last trading day [3][12][13]. - The trading limit for polyolefin monthly average price futures and physical delivery futures is set separately, with the total trading limit not exceeding that of existing varieties [13]. 3.3 Calculation of Polyolefin Monthly Average Price Futures Contract Settlement Price - Before the month before the contract month, the settlement price of the physical delivery futures contract is exactly the same as that of the monthly average price futures contract. In the month before the contract month, there are differences in the trends [16][17][18]. - During price increases, the settlement price center of monthly average price futures is lower than that of physical delivery futures, while during price decreases, it is higher, which helps smooth price fluctuations [17][18]. 3.4 Significance of Polyolefin Monthly Average Price Futures Contracts - Monthly average price futures contracts can smooth monthly price fluctuations, provide relatively stable price information, and avoid budget deviations caused by single - day price fluctuations [22][25]. - They can improve the price discovery function by integrating daily price signals and reflecting the medium - term supply - demand balance more truly [25]. - They can enhance market liquidity by attracting more financial institutions to participate in trading [25].