Core Viewpoint - The training program aims to enhance the understanding of futures markets among government officials to better support the real economy and improve risk management practices [1][4]. Group 1: Importance of Futures Market - The futures market plays a crucial role in risk management for enterprises, stabilizing operations and enhancing pricing transparency in the commodity trade [3][4]. - Futures prices have become an important reference for spot trade, improving market fairness and transparency, and increasing China's pricing influence in international markets [3]. - The futures market acts as a "shock absorber" for enterprises, especially during periods of significant commodity price fluctuations, thereby stabilizing production management expectations [3]. Group 2: Development in Shandong Province - Shandong, as a major industrial and agricultural province, has a solid foundation for futures market development, supported by various government departments [3][4]. - The futures market in Shandong is experiencing steady growth, effectively serving the real economy [3]. Group 3: Regulatory Challenges - The complexity of futures market mechanisms, such as margin requirements and settlement processes, poses higher demands on regulatory bodies [3][4]. - Regulatory agencies need to monitor transactions in real-time and address any violations promptly, while various departments are involved in different aspects of risk management and compliance [3][4]. Group 4: Training Objectives and Outcomes - The training aims to deepen the understanding of futures tools among government officials and promote inter-departmental learning and collaboration [4][6]. - The program provides a platform for discussing compliance issues related to the use of futures tools, helping participants clarify the internal logic of how futures markets serve the real economy [6][7]. - Participants expressed a commitment to leverage this training to assist more enterprises in effectively using futures and derivatives for risk management, contributing to high-quality economic development in Shandong [7].

Core Viewpoint - The Chinese futures market has made significant progress in enhancing its service capabilities, price influence, and integration into national development, thereby supporting the stable operation of the real economy and addressing external risks [1][2]. Group 1: Market Development and Service Capabilities - The futures market's service capabilities have been continuously enhanced, with a richer variety of products and tools introduced, including important futures varieties like polysilicon and aluminum alloy since the end of last year [1]. - The participation of industrial clients has increased, with a 12.2% year-on-year growth in daily trading volume from industrial clients in 2024, and the total holding of 48 major varieties by industrial clients exceeding 200 million tons [1]. - The number of listed companies participating in hedging has maintained growth for eleven consecutive years [1]. Group 2: Price Influence and Market Integration - The influence of futures prices has been steadily increasing, with the opening up of the futures market allowing for more foreign participation, expanding the number of futures and options available to qualified foreign investors to 91 [1]. - Among the listed commodity futures and options, 84 are industrial products, accounting for 64%, providing strong support for the stability of manufacturing-related market entities amid increasing uncertainties [1]. Group 3: Future Directions and Strategic Focus - The China Securities Regulatory Commission (CSRC) aims to enhance service capabilities and levels, focusing on supporting the real economy and national strategies [2]. - Key future initiatives include enriching product supply by promoting the listing of important energy varieties like liquefied natural gas, and expanding the coverage of futures and derivative tools [2]. - The CSRC plans to advance high-level opening of the futures market, increasing the range of futures and options available for foreign investors [2]. - There will be a focus on improving market services, guiding leading enterprises to utilize the futures market effectively, and supporting small and medium-sized enterprises in risk management [2]. - The industry will enhance research-driven development to improve futures market research capabilities, addressing the needs of the national strategy and real economy [3].

Group 1 - The forum focused on how the futures market can assist the oilseed and oil industry in responding to trade changes [2][3] - The oilseed and oil industry is crucial for food security and economic stability in China, with challenges in stabilizing planting areas and managing price risks [3][4] - The Zhengzhou Commodity Exchange (ZCE) has developed oilseed futures over the past decade, becoming an essential risk management tool for industry players [3][4] Group 2 - The global economic landscape is undergoing significant changes, leading to increased trade uncertainties and price volatility in the oilseed and oil market [3][4] - The domestic supply of edible vegetable oil remains robust despite a reduction in imports, with global supply continuing to increase [5] - The development of the biodiesel industry is significantly impacting global oilseed supply and demand, with nearly 20% of vegetable oil used for biodiesel [5][6] Group 3 - The ZCE is committed to enhancing market functions and service quality to help the oilseed industry navigate global trade challenges [4] - The domestic market for rapeseed and peanut oil is expected to face risks due to fluctuations in supply and demand, influenced by weather conditions and import levels [6][7] - The peanut industry in China is transitioning from a net exporter to a net importer, indicating a shift in trade dynamics [7][8] Group 4 - The future of the peanut market is projected to grow, driven by consumption, industry upgrades, and technological innovation [8] - The oilseed market is experiencing a divergence in oil and meal prices, with strong oil prices supported by biodiesel demand while meal prices remain under pressure [8]

Core Viewpoint - The futures market is increasingly integrated into the national development framework, enhancing its role as a professional risk management platform amid global economic uncertainties [2][3]. Group 1: Futures Market Development - The futures market's ability to serve the real economy is continuously improving, with a diverse range of products being introduced, including polysilicon and aluminum alloy futures [2]. - As of now, there are 131 listed commodity futures and options, expanding the market's reach across various sectors of the national economy [2]. - The daily trading volume of industrial clients increased by 12.2% year-on-year in 2024, with the total holding of 48 major products equivalent to over 200 million tons in the spot market [2]. Group 2: Price Influence and Application - The influence of futures prices is on the rise, with various hedging and arbitrage strategies being widely adopted in response to external uncertainties [3]. - Futures prices are becoming a reference for international trade pricing, with the number of foreign investors participating in domestic futures options expanding to 91 [3]. Group 3: Support for National Strategies - The futures market is contributing to rural revitalization and food security through initiatives like "insurance + futures" to stabilize farmers' incomes [3]. - The market is also supporting high-quality development in the manufacturing sector, with 84 of the listed products being industrial goods, accounting for 64% of the total [3]. Group 4: Future Directions for Zhengzhou Futures Exchange - Zhengzhou Futures Exchange aims to enhance its service capabilities by diversifying product offerings, including the development of sunflower seed oil futures and other commodities [4][5]. - The exchange plans to improve market operation and service quality, focusing on tailored strategies for individual products and enterprises [5]. - There is a commitment to expand international cooperation and enhance the global pricing influence of the Zhengzhou futures market [5][6]. Group 5: Regulatory and Institutional Support - The China Securities Regulatory Commission (CSRC) emphasizes the need for high-level market openness and plans to introduce more products to meet risk management needs [6][7]. - The CSRC will enhance service models for industries, guiding enterprises in utilizing the futures market for stable operations [6]. - There is a focus on improving research capabilities to support the futures market's development in alignment with national strategies [7].

Core Viewpoint - The 2025 China (Zhengzhou) International Futures Forum focused on the role of the futures market in supporting national development and enhancing new productivity, emphasizing the need for the market to contribute to the construction of a strong nation [1] Group 1: Key Initiatives and Focus Areas - The China Securities Regulatory Commission (CSRC) highlighted five key areas for the futures market's development, including enriching product supply, promoting high-level openness, enhancing market services, improving institutional capabilities, and strengthening research-driven development [2][3] - The CSRC aims to launch important energy products like liquefied natural gas and expand the range of futures and options available to qualified foreign investors [2][3] Group 2: Market Integration and Development - The futures market is increasingly integrated into national development strategies, with ongoing research and development of derivatives that meet the needs of the real economy, such as sunflower seed oil and steel products [4] - As of the end of last year, new futures products like polysilicon and casting aluminum alloy have been introduced, broadening the market's service capabilities [4] Group 3: Participation and Engagement - The Zhengzhou Commodity Exchange (ZCE) has listed 47 products, providing a comprehensive toolset for risk management across various industries, with significant participation from companies in sectors like cotton and urea [5] - In 2024, 1,503 A-share listed companies issued hedging announcements, with a participation rate of 28.6%, indicating a growing trend in risk management among listed companies [6] Group 4: International Cooperation and Openness - The ZCE has opened 26 futures and options products to qualified foreign investors, with nearly 170 QFI clients from 12 countries and regions, enhancing domestic and international market linkages [7] - The ZCE plans to deepen international product development and expand the range of tradable products for QFIs, aiming to enhance its global pricing influence [8]

Core Viewpoint - The China Securities Regulatory Commission (CSRC) emphasizes the strengthening of the futures market's ability to serve the real economy and plans to continuously enrich the product supply to better meet market risk management needs [1]. Group 1: Market Development - The number of listed commodity futures and options in China has reached 131, with 84 of them being industrial products, accounting for 64% of the total [1]. - The CSRC aims to enhance the stability of manufacturing-related market entities and improve the security of industrial and supply chains amid increasing market uncertainties [1]. Group 2: Product Expansion - The CSRC will focus on strong regulation to prevent risks and promote high-quality development by continuously enriching product offerings, including the listing of important energy varieties like liquefied natural gas [1]. - The Zhengzhou Commodity Exchange has listed 27 futures and 20 options, with 13 unique global varieties, leading the market in terms of product variety [2]. Group 3: Agricultural Support - The Zhengzhou Commodity Exchange has initiated 250 "insurance + futures" projects based on six varieties, including apples and red dates, covering 16 provinces and benefiting nearly 900,000 farming households [1].

Core Insights - The "Shangchu Wuyou" project has provided risk management services for 4.95 million tons of urea to 99 enterprises over five years, covering 23 provinces in China, including 13 major grain-producing provinces, establishing itself as a benchmark for the futures market serving the real economy [1][2] Group 1: Project Achievements - The project has optimized its support structure, increasing warehouse fee support and transaction fee limits, creating a comprehensive support system of "warehouse + factory warehouse" and "futures + options" [2] - The project has fostered a positive atmosphere for comprehensive participation among reserve enterprises, with nearly all qualified enterprises now involved [3] - The number of warehouse receipts has significantly increased, enhancing the project’s role in stabilizing market price expectations and ensuring compliance with national fertilizer storage requirements [3][4] Group 2: Corporate Practices - Enterprises like Zhongnong Group have successfully utilized the project to reduce registration costs and improve the flow of reserve urea in the market, aligning with national market integration goals [4] - Anhui Huilong Agricultural Group reported a reduction in losses of nearly 10 million yuan through participation in the project, receiving close to 1 million yuan in project funding [5] - The project has provided critical support for enterprises to manage price volatility, with a correlation of over 95% between futures and spot prices for urea [6] Group 3: Future Outlook - The project has evolved from providing 160,000 yuan in subsidies to over 10 million yuan, covering 80% of national fertilizer reserves, indicating strong support from various stakeholders [9] - Future plans include optimizing delivery layouts and enhancing innovative models like "insurance + futures" to ensure the project continues to support farmers and enterprises effectively [9]

Core Viewpoint - The futures market is taking on a new mission to serve the real economy under the policy backdrop of "stabilizing expectations, strengthening confidence, and expanding domestic demand" [1] Group 1: Challenges Faced by the Real Economy - The real economy is facing significant challenges due to the volatility of commodity prices and weak demand, leading to increased operational risks for enterprises [2][3] - Enterprises are experiencing greater uncertainty in orders and pricing, which affects their production planning, raw material procurement, and financial preparations [2][3] Group 2: Role of the Futures Market - The futures market plays a crucial role in stabilizing expectations through its three core functions: price discovery, risk management, and resource allocation [3] - An example is provided where a company used futures contracts to hedge against the price volatility of lithium carbonate, ensuring stable production and timely delivery despite market fluctuations [3] Group 3: Difficulties in Utilizing Futures Tools - The basis risk is a major difficulty for enterprises when using futures tools for hedging, as the price movements of raw materials and finished products do not always align with futures prices [4] - Other challenges include funding pressures, a shortage of professional talent, and insufficient understanding of futures market rules and trading strategies [4] Group 4: Expectations from the Futures Industry - Enterprises expect more personalized and professional risk management solutions tailored to their specific industry characteristics and risk tolerance [5] - There is a demand for enhanced training and guidance on futures knowledge to improve understanding and capabilities within enterprises [5] - Innovation in service models and products is also sought, such as risk management contracts linked directly to spot market needs [5] Group 5: Innovations in Service Models - Hai Zheng Futures has introduced innovative service models like rights-linked trade and warehouse receipt swapping to better meet the needs of enterprises [6][7] - The rights-linked trade model allows enterprises to have options based on market price fluctuations, providing flexibility in risk management [6] - The warehouse receipt swapping service addresses mismatches between the required and actual warehouse receipt brands, enhancing the flexibility of enterprises in futures delivery [7] Group 6: Recommendations for Improving Futures Services - There are several identified bottlenecks in the futures market's service to the real economy, including unregulated warehouses leading to credit risks [8] - Recommendations include enhancing government oversight of social warehousing, focusing on specific commodity chains, and increasing support for risk subsidiaries within futures companies [8][9]

Core Viewpoint - The futures market is taking on a new mission to serve the real economy amid the current policy backdrop of "stabilizing expectations, strengthening confidence, and expanding domestic demand" [1] Group 1: Challenges Faced by Real Enterprises - Real enterprises are facing significant challenges due to the volatility of commodity prices, which has become a norm, leading to increased procurement costs and reduced profit margins [2] - Demand weakness and order uncertainty are also major risks, as global market demand shrinks and domestic competition intensifies, complicating production planning and increasing operational costs [2] Group 2: Role of Futures Market - The futures market plays a crucial role in stabilizing expectations through three core functions: price discovery, risk management, and resource allocation [3] - An example is provided where a company used futures contracts to hedge against the price volatility of lithium carbonate, ensuring stable production and timely delivery despite market fluctuations [3] Group 3: Difficulties in Utilizing Futures Tools - Basis risk is a primary difficulty for enterprises using futures tools for hedging, as the price movements of raw materials and finished products do not always align with futures prices [4] - Other challenges include funding pressures, a shortage of professional talent, and insufficient understanding of futures market rules and trading strategies [4] Group 4: Expectations from the Futures Industry - Enterprises expect more personalized and professional risk management solutions tailored to their specific industry characteristics and risk tolerance [5] - There is a demand for enhanced training and guidance on futures knowledge to improve understanding and capability within enterprises [5] - Innovation in service models and products is also anticipated, such as risk management contracts linked directly to spot market needs [6] Group 5: Innovations in Service Models - The introduction of innovative service models like rights-based trading and warehouse receipt swapping has been highlighted as a significant breakthrough to better meet the needs of real enterprises [7][8] - These models provide more flexible risk management solutions and enhance the collaboration between futures companies and enterprises [8] Group 6: Recommendations for Improving Futures Services - There are several identified bottlenecks in the futures market's service to the real economy, including credit risks from unregulated warehouses and limited coverage of spot products by risk subsidiaries [9] - Recommendations include increasing government oversight of social warehousing, focusing risk subsidiaries on specific commodity chains, and enhancing support for risk subsidiaries from industry associations [10][11]

Core Viewpoint - The futures market is taking on a new mission to serve the real economy under the current policy backdrop of "stabilizing expectations, strengthening confidence, and expanding domestic demand" [1] Group 1: Challenges Faced by Real Enterprises - Real enterprises are facing significant challenges due to the volatility of commodity prices and weak market demand, leading to increased operational risks and costs [1][2] - The fluctuation in commodity prices has become a norm, causing uncertainty in procurement costs and sales prices, which can squeeze profit margins and potentially lead to losses [1][2] - Demand is weakening, with reduced overseas orders and intensified domestic competition, making it difficult for enterprises to secure stable orders and affecting production planning and resource procurement [1][2] Group 2: Role of Futures Market - The futures market plays a crucial role in stabilizing expectations through its three core functions: price discovery, risk management, and resource allocation [2] - An example is provided where a company used futures contracts to hedge against the price volatility of lithium carbonate, ensuring stable production and timely delivery despite market fluctuations [2] Group 3: Difficulties in Risk Hedging - The basis risk in futures contracts is a major difficulty for enterprises, as the price movements of their raw materials and finished products do not always align with futures prices, affecting the effectiveness of hedging [3] - Other challenges include funding pressures, a shortage of professional talent, and insufficient understanding of futures market rules and trading strategies [3] Group 4: Expectations from the Futures Industry - Enterprises expect more personalized and professional risk management solutions tailored to their specific industry characteristics and operational models [4] - There is a demand for enhanced training and guidance on futures knowledge to improve understanding and capabilities within enterprises [4] - Innovation in service models and products is sought, including risk management contracts linked directly to spot market needs [4][6] Group 5: Breakthrough Service Models - Innovative service models such as "contingent trade" and "warehouse receipt exchange" have been introduced to provide more flexible risk management solutions for enterprises [6] - The contingent trade model allows enterprises to have options based on market price fluctuations, while the warehouse receipt exchange service addresses mismatches in delivery requirements [6] Group 6: Addressing Service Blockages - Current blockages in the futures market's service to the real economy include non-standardized warehouses leading to credit risks and limited coverage of spot products by risk subsidiaries [7][8] - Recommendations include enhancing regulatory oversight of storage facilities, focusing on specific commodity chains, and increasing support for risk subsidiaries to improve service capabilities [8]