Core Viewpoint - The recent regulations from the Ministry of Finance and the China Futures Association aim to eliminate regulatory arbitrage in the standard warehouse receipt trading business by emphasizing the economic substance over legal form, thereby transforming the industry towards genuine risk management services [1][2][4]. Regulatory Framework - The Ministry of Finance's new accounting rules classify frequent trading of warehouse receipts as financial instruments, with the price differences recorded as investment income rather than sales revenue [1][2]. - The China Futures Association's management rules focus on inventory risk management and categorize certain business models as financing rather than trading, requiring net income recognition and real ownership of goods during the business period [2][3]. Synergistic Effects - Both regulations create a regulatory loop that connects business classification with accounting confirmation, effectively limiting arbitrage opportunities and pushing the industry back to its risk management roots [3][4]. - The new rules compel futures risk management companies to adapt by reducing reliance on speculative trading and focusing on genuine risk management services [4][5]. Industry Impact - The combined effect of these regulations is expected to shrink revenue scales for futures risk management companies and increase compliance risks, necessitating a strategic shift towards serving core clients in the real economy [5][6]. - The regulations aim to dismantle the "financial bubble" associated with warehouse receipt trading, emphasizing that sustainable profits must come from real risk management services [4][6]. Strategic Recommendations - Futures risk management companies should prioritize resources for clients with genuine risk management needs and optimize trading strategies to reduce speculative activities [5][6]. - Companies are encouraged to transform compliance investments into competitive advantages by developing transparent asset management systems and seeking innovative financing solutions [6].