Core Viewpoint - The company has established a comprehensive set of guidelines for its hedging activities to mitigate market price volatility risks, ensuring that these activities align with its operational needs and comply with relevant regulations [1][2]. Group 1: Hedging Business Overview - The hedging business includes financial derivatives and commodity futures hedging to mitigate risks associated with exchange rates, interest rates, and commodity prices [1][2]. - The company must conduct hedging activities in a legal, prudent, safe, and effective manner, ensuring that these activities do not interfere with normal operations or involve speculative trading [2]. Group 2: Organizational Structure - The company's board of directors and shareholders' meeting serve as the decision-making bodies for hedging activities [3]. - A dedicated working group is established to manage hedging activities, comprising key executives such as the chairman, general manager, and financial officers [3][4]. Group 3: Approval Authority - The company must prepare a feasibility analysis report for hedging activities, which requires approval from the board of directors [5]. - Certain transactions, particularly those involving significant financial commitments, must also be submitted for shareholders' approval [5]. Group 4: Risk Management - The company is required to conduct thorough assessments of financial institutions before engaging in hedging activities [27]. - Regular audits and checks are mandated to ensure compliance with risk management policies and to identify any operational risks [28][30]. Group 5: Emergency Procedures - In the event of significant market changes or natural disasters, the company must promptly report and take necessary actions to mitigate risks, including closing or locking positions [37][39]. - Contingency plans are in place for operational disruptions, ensuring that trading can continue through alternative means [40][41]. Group 6: Documentation and Record Keeping - All documentation related to hedging activities, including applications, approvals, and transaction records, must be archived for a minimum of ten years [41]. - The company is responsible for maintaining confidentiality regarding its hedging strategies and financial information [25].

Core Viewpoint - Jiangsu Litong Electronics Co., Ltd. plans to expand its hedging business to mitigate the adverse effects of raw material price and exchange rate fluctuations on its operations [1][7] Group 1: Hedging Business Expansion - The company and its subsidiaries intend to add hedging products limited to those related to production and operation, including raw materials and foreign exchange [1][4] - The maximum margin required for futures and options hedging will not exceed RMB 10 million, and for foreign exchange hedging, it will not exceed USD 5 million or its equivalent in RMB [1][5] - This proposal requires approval from the company's shareholders' meeting [1] Group 2: Previous Hedging Performance - The company previously conducted futures hedging to reduce the impact of commodity price fluctuations, with a margin usage of RMB 2.0579 million and a total trading loss of RMB 1.08565 million, accounting for -4.41% of the audited net profit for 2024 [2][3] Group 3: New Hedging Products Overview - The company plans to include options in its hedging strategy, focusing on raw materials such as hot-rolled steel, rebar, and copper [2][4] - The hedging activities will be based on the company's production needs and will adhere to strict risk management protocols [4][6] Group 4: Foreign Exchange Hedging - The company aims to conduct foreign exchange hedging to mitigate the impact of exchange rate fluctuations on profits, utilizing simple foreign exchange forward products [5][6] - The same margin limits apply to foreign exchange hedging, with funds sourced from the company's own capital [5][6] Group 5: Risk Management and Control Measures - The company acknowledges the risks associated with hedging, including market, operational, and credit risks, and will implement robust risk control measures [6][8] - Continuous monitoring of market conditions and adjustments to strategies will be employed to enhance hedging effectiveness [6][7] Group 6: Accounting Treatment - The company will follow relevant accounting standards for the fair value measurement of hedging transactions, ensuring transparency and compliance [8]

Core Viewpoint - The document outlines the management system for futures and derivatives trading at Jiangsu Litong Electronics Co., Ltd., emphasizing risk management related to foreign exchange rates and commodity price fluctuations while ensuring compliance with relevant laws and regulations [1][2]. Group 1: General Principles - The purpose of the management system is to strengthen the company's futures and derivatives trading operations and effectively mitigate risks associated with foreign currency exchange and commodity price volatility [1]. - Futures trading refers to transactions involving futures contracts or standardized options, while derivatives trading includes swaps, forward contracts, and non-standardized options [1][2]. Group 2: Hedging Activities - The company engages in hedging activities to manage specific risks such as foreign exchange, price, interest rate, and credit risks through futures and derivatives trading [2]. - Hedging activities include selling hedges on existing inventory, hedging fixed-price contracts, hedging floating-price contracts, and hedging anticipated purchases or production [2]. Group 3: Organizational Structure and Responsibilities - A leadership group is established to oversee futures and derivatives trading, consisting of the general manager, relevant vice presidents, and other key personnel [4]. - The leadership group is responsible for comprehensive management of trading activities, approving hedging strategies, and handling emergency risk situations [4]. Group 4: Approval and Authorization - The company must prepare feasibility analysis reports for futures and derivatives trading and submit them for board approval, especially when certain financial thresholds are met [6][7]. - Transactions that do not aim for hedging purposes must be clearly disclosed and cannot be misrepresented as hedging activities [8]. Group 5: Internal Processes - The strategy group is responsible for market analysis and developing specific trading plans, which must be approved by the leadership group [5]. - The trading group executes transactions based on approved plans, while the risk control group monitors compliance and risk management [5][9]. Group 6: Risk Management - The company must establish a risk measurement system to assess financial risks, including margin requirements and potential losses [30]. - A risk reporting mechanism is in place to address significant market fluctuations and potential losses, ensuring timely communication to the leadership group [31][32]. Group 7: Emergency Procedures - The company has protocols for emergency situations, including significant market changes or natural disasters, to mitigate potential losses [38][39]. - In case of operational disruptions, alternative trading methods must be employed to ensure continuity [40]. Group 8: Compliance and Disclosure - Employees involved in futures and derivatives trading must adhere strictly to the established management system, with penalties for violations [42][43]. - The company is required to fulfill information disclosure obligations related to its trading activities [45].

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The container shipping index (European Line) futures have the economic logic basis to be used as a hedging tool for Company B, and can hedge the spot price. The futures price can effectively reflect the fluctuation trend of the spot freight rate, and the spot and futures prices are positively correlated [1][27]. - The supply of the European Line is relatively loose. The peak freight rate in the peak season from July to August is expected to move forward slightly compared with the previous expectation. After that, the downward slope of the freight rate will mainly depend on the scale of blank sailings in August. From September to October, the market will gradually enter the off - season, and the freight rate may decline faster. Considering the Spring Festival in 2026, the peak of the year - end peak season will probably appear in mid - January. Overall, it will maintain a volatile and weak pattern, and attention should be paid to the potential disturbances of geopolitical risks [2]. - To prevent price risk events after locking the forward freight rate with customers, it is recommended that Company B buy container shipping index (European Line) futures contracts when the price drops, and close the futures positions after purchasing the shipping space, so as to make up for the losses caused by the cost increase with the profits in the futures account. It is recommended to buy futures for hedging at low prices for the sold orders [3]. - The hedging business of enterprises requires the close cooperation of multiple departments, and there should be a scientific decision - making process and strict risk control measures [4]. 3. Summary According to the Directory 3.1. Feasibility Analysis of Company B's Container Shipping Index (European Line) Futures Hedging - **Risk Exposures in Different Links of the Shipping Industry Chain**: Upstream shipping companies face the risk of falling forward freight rates and can use selling hedging; mid - stream freight forwarders have two - way risk exposures and can use both buying and selling hedging according to the order cycle; downstream foreign trade enterprises face the risk of rising freight rates and can use buying hedging [14]. - **Analysis of Company B's Risk Exposures**: Company B's risk exposure comes from the time difference between "locking orders and booking cabins", with a large scale of 2500 FEU, concentrated time windows around June and September, complex driving factors dominated by geopolitics, and far - reaching multi - dimensional business conduction effects [17][23]. - **Feasibility Analysis of Company B's Futures Hedging**: The correlation between the WCI Shanghai - Rotterdam container freight rate and the settlement price of the active contract month of the container shipping index (European Line) futures on the Shanghai Futures Exchange is 0.7487, indicating that the futures contract can be used as a hedging tool for Company B, but basis risk should be noted [27]. 3.2. Fundamental Analysis of Container Shipping Index (European Line) Futures - **Exceeding Expectations in Demand in the First Half of the Year and Return to Seasonal Normalcy**: From January to April, China's container shipping volume exported to Europe increased by 9% cumulatively. The substitution effect of Asian production capacity for European local production capacity is the core driving force for the strong growth of China - Europe trade. In the short term, China - Europe trade still has support, but the growth rate of cargo volume may converge in the second and third quarters [28]. - **Moderate Increase in the Pressure of Excess Supply on the European Line**: In the second half of the year, the pressure of new ship deliveries remains high. The upper and lower limits of the European Line's weekly capacity have increased, and the market has shifted from oligopoly to oligopolistic competition. The tariff issue between China and the United States may have an impact on the European Line, and port congestion has a limited impact on the supply side [37][42][56]. - **Market Outlook for the Second Half of 2025**: It is expected that the peak freight rate in the peak season from July to August will move forward slightly, and the downward slope of the freight rate after that will depend on the scale of blank sailings in August. From September to October, the freight rate may decline faster. The peak of the year - end peak season will probably appear in mid - January. The European Line will maintain a volatile and weak pattern, and geopolitical risks should be noted [70]. 3.3. Company B's Container Shipping Index (European Line) Futures Hedging Plan - **Calculation of the Optimal Hedge Ratio**: The optimal hedge ratio is 0.83, and the hedging efficiency can reach 74.2%. The container shipping index (European Line) futures hedging can transfer 61.7% of the risk, and the residual risk mainly comes from the delay in the convergence of spot and futures prices, basis mutations caused by policy shocks, and liquidity premium fluctuations [76][88][101]. - **Impact of Value - Added Tax on Container Freight Rates**: In the hedging operation, the impact of value - added tax is crucial. Company B's value - added tax treatment needs to be comprehensively judged according to the nature of the service, the way of contract signing, and whether it meets the tax - exemption policy. The subsequent plan does not consider the impact of value - added tax [103]. - **Impact of Container Freight Rate Basis**: The container freight rate basis fluctuates significantly, and its core driving factors include supply - demand imbalance, macro and policy shocks, and seasonal demand fluctuations. Basis risk affects the hedging effect, and Company B can optimize the hedging strategy from three aspects [109][110][112]. - **Futures Hedging Strategy**: It is recommended that Company B buy container shipping index (European Line) futures contracts at low prices for the sold orders. For the 400 - 500 FEU in July, it can choose EC08 and EC10 contracts, and the theoretical minimum hedging funds required are about 401.32 million yuan, with a total recommended deposit of about 892.32 million yuan [114][115]. - **Ending Method of Hedging**: The container shipping index (European Line) futures contracts use cash settlement. The hedging position can be closed through reverse operations in the futures market [116]. 3.4. Company B's Container Shipping Index (European Line) Futures Hedging Risk Control System - **Decision - Making Process of Hedging**: In the market analysis stage, it is necessary to evaluate macro variables, focus on the supply - demand structure of the industry, and combine technical analysis and quantitative tools to verify macro and fundamental conclusions [117]. - **Risk Control Measures for Hedging**: No specific content provided in the given text.

Core Viewpoint - The launch of the China Securities Commodity Index Company's first sector-based commodity futures index series, the China Securities Energy and Chemical Industry Futures Index Series, aims to objectively reflect the price trends and industrial cycle changes of China's energy and chemical industry, which accounts for over 40% of the global market [1][2]. Group 1: Index Characteristics - The series includes three specific indices: the China Securities Energy and Chemical Industry Futures Price/Index, the China Securities Energy Chemical Finished Product Futures Price/Index, and the China Securities Organic Chemical Product Futures Price/Index [2]. - The indices are based on domestic listed futures varieties, covering important products from both the futures and spot markets, thus providing a comprehensive view of the energy and chemical industry chain [2][3]. - The series focuses on different segments of the industry chain and selects mature products in the futures market, offering reliable market dynamics for enterprises and investors to hedge against price volatility [2][4]. Group 2: Impact on Enterprises - The index design balances macroeconomic commonalities and microeconomic characteristics, aiding production companies in planning production and sales strategies based on market supply and demand trends [3][4]. - The series is expected to enhance the pricing power of Chinese commodities in the global market, filling the gap in pricing benchmarks for the industry chain [4][9]. - The index's comprehensive coverage allows for better price signals, enabling companies to manage production and procurement more effectively [6][7]. Group 3: Market Dynamics - The correlation and hedging efficiency of six energy and chemical futures varieties have remained above 90% from 2021 to 2024, indicating the importance of the pricing mechanism for upstream and downstream enterprises [5]. - The index provides a more intuitive and macro price signal, facilitating smoother cooperation between suppliers and buyers in the commodity market [6][7]. - The index's introduction is seen as a significant step towards a more systematic and diversified commodity futures market in China, enhancing the overall risk management capabilities of the industry [4][9][10].

Core Insights - The launch of pure benzene futures and options on July 8 marks a significant development in the chemical derivatives market, providing a transparent and efficient risk management tool for the industry [1][3][5] - The overall performance on the first trading day was stable, with the main contract closing at 5,931 yuan/ton, a slight increase of 31 yuan/ton from the listing price, indicating a reasonable pricing mechanism [3][4] Industry Impact - The introduction of pure benzene futures and options is expected to positively influence the petrochemical industry, particularly during its transformation and upgrading phase, by offering a public and efficient risk management avenue for upstream and downstream enterprises [3][5] - The current market for pure benzene is characterized by weak supply and demand, yet the futures prices remained aligned with spot prices, suggesting a rational pricing structure despite market volatility [4][5] Market Development - With the addition of pure benzene futures and options, the total number of futures and options in the market has increased to 150, enhancing the diversity of chemical derivatives and supporting industrial development [1][5] - The launch is anticipated to improve price discovery mechanisms and risk management capabilities for enterprises, thereby fostering a more standardized and efficient industrial chain ecosystem [5]

Core Viewpoint - The training program aims to enhance the quality of service provided by the futures market to private enterprises in Henan, promoting high-quality development of the private economy [1][5]. Group 1: Training Program and Objectives - The "First Training Class on Establishing a Modern Enterprise System for Private Enterprises (Futures Special)" was successfully held in Zhengzhou, targeting 60 executives from leading private enterprises in Henan [1]. - The training is part of a broader initiative to implement policies that support the development of the private economy, which contributes over 55% of Henan's GDP [1][5]. Group 2: Importance of Futures Market - The Zhengzhou Commodity Exchange (ZCE) plays a crucial role in providing a risk management framework for the industrial development of Henan and the nation [2]. - The futures market helps enterprises manage risks associated with price volatility, stabilize operating costs, and enhance competitiveness [2]. Group 3: Challenges Faced by Private Enterprises - There is a noticeable gap in the participation and utilization of the futures market among private enterprises in Henan compared to more developed regions [2]. - Many enterprises lack a deep understanding of the futures market and face issues such as non-standard operations and inadequate risk management [2]. Group 4: Insights from Participants - Participants like the chairman of a cooking oil company realized the importance of using futures for hedging rather than speculation, leading to plans for a new hedging system [3]. - Another participant from a metallurgy company identified the flexibility of options and new trading models as key tools for managing basis risk [4]. Group 5: Future Directions - The ZCE plans to strengthen collaboration with provincial government departments to support stable operations of enterprises and contribute to the high-quality development of the private economy in Henan [5]. - The Henan Federation of Industry and Commerce aims to continue facilitating communication and collaboration among various units to support healthy enterprise development [5].

Core Viewpoint - The document outlines the futures and derivatives trading management system of Trina Solar Limited, emphasizing risk management, compliance with regulations, and the structured approach to hedging activities. Group 1: General Principles - The system applies to the futures and derivatives trading activities of the company and its wholly-owned or controlled subsidiaries, which must be managed and operated uniformly by the company [3] - The trading activities must comply with relevant national laws and regulations, ensuring the safety of company assets [3][4] Group 2: Hedging Activities - Hedging activities include selling existing spot inventory, hedging fixed-price purchase and sales contracts, and hedging expected procurement or production volumes [2][3] - The company is prohibited from engaging in speculative trading and must only use hedging instruments related to its production and operational needs [4][5] Group 3: Approval and Management Process - A feasibility analysis report must be prepared for futures and derivatives trading and submitted for board approval, especially if certain financial thresholds are met [6] - The company must establish a trading working group responsible for the implementation of trading projects, with oversight from the audit department [15][16] Group 4: Risk Management and Reporting - The company must continuously track market price changes and assess the risk exposure of traded futures and derivatives, reporting to management and the board [10][23] - Any significant losses or risks must be reported immediately to senior management and the board, with necessary remedial measures discussed [23] Group 5: Information Disclosure - The company is required to disclose information regarding its hedging activities, including trading purposes, instruments, and any significant losses that meet specified thresholds [25][26] - The disclosure must be timely and accurate, ensuring transparency in the company's trading activities [12][28]

General Information - Report Date: 2025-07-08 [23][38] - Analysts: Wang Yuwu, Feng Fan, Shi Cheng, Chen Sijie [38][39] Investment Rating - Absolute Price: Cautiously Bullish [3] - Option Strategy: Sell Put [4] Core View - The lead price is temporarily in a volatile pattern due to limited downstream purchasing enthusiasm. The domestic mine supply is relatively tight, and the smelters' willingness to purchase high-silver mines is low. The energy storage battery sector performs prominently, and the industry is optimistic about the second half of the year. Other battery sectors also see a gradual increase in the operating rate [1][3]. Market News and Key Data Spot Market - On July 7, 2025, the LME lead spot premium was -$24.63/ton. The SMM 1 lead ingot spot price decreased by 50 yuan/ton to 16,975 yuan/ton. The SMM Shanghai lead spot premium remained unchanged at -55 yuan/ton. The SMM Guangdong lead spot price decreased by 50 yuan/ton to 17,025 yuan/ton. The SMM Henan lead spot price decreased by 50 yuan/ton to 17,000 yuan/ton. The SMM Tianjin lead spot premium decreased by 75 yuan/ton to 17,050 yuan/ton. The lead concentrate waste price difference remained unchanged at -50 yuan/ton. The waste electric vehicle battery price remained unchanged at 10,300 yuan/ton. The waste white shell price remained unchanged at 10,175 yuan/ton. The waste black shell price remained unchanged at 10,525 yuan/ton [1]. Futures Market - On July 7, 2025, the main contract of Shanghai lead opened at 17,315 yuan/ton, closed at 17,210 yuan/ton, down 85 yuan/ton from the previous trading day. The trading volume was 29,406 lots, an increase of 5,076 lots from the previous trading day. The position was 51,045 lots, a decrease of 627 lots from the previous trading day. The intraday price fluctuated, with the highest point reaching 17,315 yuan/ton and the lowest point reaching 17,155 yuan/ton. In the night session, the main contract of Shanghai lead opened at 17,180 yuan/ton, closed at 17,110 yuan/ton, down 0.58% from the afternoon closing price [1]. Inventory - On July 7, 2025, the total SMM lead ingot inventory was 58,000 tons, an increase of 1,000 tons from the same period last week. As of November 28, the LME lead inventory was 259,975 tons, a decrease of 2,625 tons from the previous trading day [2]. Strategy Absolute Price Strategy - It is recommended to buy on dips for hedging [3]. Option Strategy - Sell put options [4]

事实上，对纯苯期货、期权上市，芳烃产业链企业期待已久。 今日，我国期货市场"化工家族"再添"新丁"，纯苯期货、期权在大商所挂牌上市。这意味着芳烃产业链 的风险管理体系将更加健全，风险管理工具将更为丰富，能够更好地满足相关产业企业个性化、多样化 和精细化的避险需求。 根据大商所发布的纯苯期货合约及相关通知，纯苯期货交易代码为BZ。首批上市交易合约为BZ2603、 BZ2604、BZ2605、BZ2606，所有合约的挂牌基准价均为5900元/吨。 "期货挂牌价格小幅升水现货。截至7月7日期货市场收盘，华东纯苯现货价格在5830元/吨附近，近期现 货市场价格表现偏弱。"紫金天风期货分析师汤剑林表示，挂牌价格升水现货有利于吸引纯苯工厂参与 库存套期保值，锁定加工利润，缓解经营压力。 在远大石油化学有限公司副总经理金佳看来，大商所充分考虑了产业实际情况及行业交易习惯，对产品 指标、区域上下游供需分布、库区配套以及最小成交单位数量等均有周全的考虑，期货、期权合约规则 完善，符合产业情况，匹配产业需求。 旭阳集团国际事业部副总经理颜庭玉也认为，纯苯期货、期权合约规则设计科学严谨，充分体现了风险 管理工具与产业实际的深度融合 ...