Core Viewpoint - A leading freight forwarding company in Shanghai is facing operational risks due to fluctuations in forward freight costs while expanding its direct customer market. Guotai Junan Futures has developed a tailored hedging solution to mitigate the risk of rising costs by purchasing the EC2512 contract, effectively locking in stable profits for the company [1][4]. Group 1: Industry Common Issues - Fluctuations in freight rates pose significant operational risks across the shipping market, impacting freight forwarders and shippers who face cost pressures from rising rates. Freight forwarders need to hedge against rising costs by purchasing shipping futures, while shipping companies and primary freight forwarders must guard against falling rates by selling futures contracts to lock in profits [2]. - Middle-tier freight forwarding companies often lack effective risk management tools due to insufficient contractual spirit in certain segments, leaving them exposed to unhedged risks [2]. Group 2: Company Background and Needs - The Shanghai-based freight forwarding company is a comprehensive enterprise with a global network. In 2025, the company aims to expand its direct customer market by participating in a tender for European export routes for home appliance companies, needing to quote a fixed price of $1,800/FEU while facing the risk of rising upstream freight costs [3]. Group 3: Service Solution and Implementation - The hedging strategy was designed based on fundamental research, considering geopolitical factors, European economic recovery, and shipping capacity control. Guotai Junan Futures recommended the company to buy shipping futures to hedge against future increases in spot freight costs [4]. - The company won a bid for 64 FEU (32 FEU each for November and December), locking in revenue at $1,800/FEU. To hedge against cost risks, Guotai Junan Futures advised purchasing 16 EC2512 contracts at a price of 1,000 points, corresponding to a freight rate of $1,500/FEU, effectively locking in future costs [6][8]. Group 4: Project Outcomes and Future Cooperation - The hedging strategy allowed the company to manage freight rate risks efficiently at a lower cost, achieving a risk-free profit of $300/FEU by locking in costs at $1,500/FEU while securing $1,800/FEU in revenue. The outcome was well-received by the company [8]. - Following the successful initial collaboration, the company engaged Guotai Junan Futures again in May 2025 for a new round of hedging for December tenders, completing the hedging of 60 FEU within a week, demonstrating improved cooperation efficiency and increased customer satisfaction [9]. Group 5: Industry Promotion and Innovation - Beyond traditional shipping companies and freight forwarders, other groups such as booking platforms and cross-border e-commerce businesses show potential for participating in the shipping derivatives market. These entities can integrate derivatives into their services, indirectly benefiting small and medium-sized freight forwarders [11]. - The "insurance + futures" model combines freight rate risk management with existing shipping insurance products, lowering industry entry barriers and enhancing overall risk coverage capabilities. This approach may be particularly appealing to cross-border e-commerce businesses facing intense competition and seeking to expand their operational space [13].

Core Viewpoint - The recent Central Economic Work Conference has set clear goals for economic development in 2026, emphasizing the need for financial institutions to support key areas such as domestic demand expansion, technological innovation, and small and medium-sized enterprises, thereby providing guidance for the futures market [1] Group 1: Service to Regional Economic Development - The company has committed to serving the regional economic development by leveraging its financial advantages since its change of control to Wuhan Financial Holding Group in 2023, focusing on the local economy [1] - A comprehensive service system named "1+N" has been established, centered around Yangtze River International Trade Group, extending services to upstream and downstream enterprises and local key industry clients, creating an ecosystem that promotes production through finance [1] - The integration of futures, spot, insurance, and credit tools aims to provide a one-stop financial and derivative solution for real enterprises, helping them manage price volatility risks and stabilize operational expectations [1] Group 2: Enhancing Supply Chain Resilience - The company emphasizes risk management capability as a core focus, providing tailored hedging solutions and optimizing inventory management to enhance supply chain risk prevention [2] - Efforts are made to lower participation barriers and organize specialized training for small and medium-sized enterprises to encourage the effective use of futures tools for stable operations [2] Group 3: Digital Transformation and Data Empowerment - The company is implementing a technology innovation strategy by utilizing big data and artificial intelligence to improve risk warning mechanisms and enhance the precision and timeliness of financial services [2] - Aiming to build an intelligent service model that covers the entire industry chain, the company focuses on ensuring financial resources are accurately directed to key areas and weak links in the real economy [2] - Collaboration with universities and research institutions is being deepened to cultivate interdisciplinary professionals, providing strong talent support for high-quality industry development [2] Group 4: Open Development and Financial Collaboration - The company is committed to an open cooperation development philosophy, actively learning from international best practices and deepening strategic collaboration with banks, insurance, and securities institutions [3] - Focus areas include technology finance, green finance, and inclusive finance, with efforts to enhance the effectiveness of financial services in supporting the real economy [3] - The company aims to improve political awareness, strengthen responsibility, deepen reform and innovation, and enhance professional capabilities to contribute to national strategies and high-quality economic development [3]

Core Viewpoint - The futures market is increasingly recognized as a vital tool for risk management by enterprises facing complex international conditions, with companies like Fangzheng Zhongqi Futures providing customized hedging solutions to enhance resilience against economic fluctuations [1][2]. Group 1: Macro Environment and Challenges - The uncertain macro environment has significantly pressured enterprises, particularly due to sharp declines in raw material prices such as coking coal, coke, industrial silicon, and lithium carbonate, disrupting revenue expectations for upstream mining companies [2]. - Geopolitical factors have heightened the risk of raw material price volatility for downstream enterprises, while trade uncertainties have increased short-term fluctuations and long-term pressures on external demand [2]. - Many private trading enterprises are experiencing rising financing costs and tightening cash flows, with small and medium-sized enterprises facing liquidity pressures and difficulties in capital turnover [2]. Group 2: Utilization of Futures Tools - Companies are increasingly aware of the importance of futures tools for risk management, as evidenced by a case where a new energy materials company locked in raw material costs through futures contracts, successfully offsetting losses from rising spot prices [3][4]. - The futures prices have become a "barometer" for pricing within the industry chain, indicating a growing reliance on these tools amid heightened market volatility [3]. Group 3: Barriers to Effective Risk Management - Several barriers hinder effective risk management through futures, including a lack of professional talent in small and medium-sized enterprises, inadequate internal control systems, and significant cash flow pressures that can lead to forced liquidation [4][5]. - Some enterprises face challenges due to incomplete coverage of futures products, limiting their ability to hedge effectively against price fluctuations [4]. Group 4: Evolving Service Demands - Enterprises are demanding more comprehensive services from futures companies, including training, team building, risk exposure analysis, and the integration of AI and big data for enhanced risk management [5][6]. - Fangzheng Zhongqi Futures is focusing on customer-centric service improvements, aiming to support small and medium-sized enterprises through tailored service models that address their specific needs [5][6]. Group 5: Structural Issues in the Futures Market - The futures market faces structural challenges, such as insufficient adaptability of risk management tools for industry clients and increased liquidity stratification, complicating the use of futures for hedging [7][8]. - The competition based on low fees is detrimental to the professional service quality within the industry, necessitating collaborative efforts to optimize the market ecosystem [8]. Group 6: Future Directions and Innovations - Recommendations include accelerating the introduction of innovative futures products in emerging sectors and enhancing trading mechanisms to improve liquidity for less active contracts [8][9]. - Fangzheng Zhongqi Futures is committed to strengthening its core competitiveness through enhanced service offerings and digital transformation, utilizing AI and big data for real-time risk monitoring and strategy adjustments [9].

Group 1 - The core objective is to establish a comprehensive international commodity storage, processing, maritime service base, and trading center, referred to as "three bases and two centers," to enhance regional competitiveness and international influence in commodity resource allocation [1] - Zhejiang Free Trade Zone has made significant progress in the commodity industry chain, achieving 252 institutional innovations, including 125 national firsts and 13 replicable nationwide initiatives [2] - The energy storage capacity in Zhejiang has reached 58 million cubic meters, and it has built the largest integrated refining project in the country, significantly reducing the dependency on imported PX [2] Group 2 - The chemical industry faces challenges such as frequent price fluctuations and intense competition from international peers, necessitating the development of a multi-layered futures market to enhance competitiveness [2] - The futures market is expected to provide strong support for industry development by offering tailored hedging solutions and improving operational stability for enterprises [3] - The integration of digital finance and logistics resources is crucial for addressing financing difficulties faced by small and medium-sized enterprises in the port economy, promoting economic upgrades [4]