Core Viewpoint - The 2025 China (Zhengzhou) International Futures Forum emphasized the importance of empowering the real economy and supporting national development through high-level opening of the futures market [1] Group 1: Market Development and Strategy - The Zhengzhou Commodity Exchange (ZCE) aims to continuously optimize market supply and align with national strategies to promote the listing of new products [1][2] - Significant achievements in the futures market this year include the launch of propylene futures and options, as well as the introduction of the first domestic short-term options for sugar [2] - The ZCE plans to enhance the range of tradable products for Qualified Foreign Institutional Investors (QFI) and deepen cooperation with international institutions to improve its global influence [2][3] Group 2: Future Plans and Goals - The ZCE's main goals include steadily expanding high-level openness and building a world-class exchange, with a focus on international product development and cross-border cooperation [3] - The China Securities Regulatory Commission (CSRC) will continue to enrich product supply and promote high-level opening of the futures market [3] Group 3: Challenges and Recommendations for Futures Companies - The need for futures companies to enhance their international competitiveness is highlighted, with a focus on improving capital strength, talent quality, and comprehensive financial service capabilities [4] - Current challenges for futures companies include single revenue streams, low-level competition, and a lack of professional skills and service capabilities [4] - Recommendations for supporting the innovation and development of futures companies include improving functional positioning, enhancing business supervision, and expanding capital channels [4] Group 4: Internationalization and Differentiation - Differentiation is key for futures companies in the internationalization process, with a focus on leveraging unique strengths to build core competitiveness [5] - Challenges faced by futures companies in international business include insufficient technical adaptation, talent shortages, and a lack of deep understanding of compliance culture [5]

Core Viewpoint - The China Securities Regulatory Commission (CSRC) emphasizes the continuous innovation of bond and futures products to support the real economy, with expectations for new varieties to be launched in the near future [1] Group 1: Recent Developments in Futures and Options - Seven new futures and options products have been launched in 2023, including sugar options, aluminum alloy futures, and propylene futures, reflecting a growing trend in product innovation [2] - The introduction of new products is closely aligned with national strategies such as "strong agriculture, strong manufacturing, and green transformation," aimed at enhancing risk management capabilities for enterprises [2][3] Group 2: Impact on the Real Economy - New futures products like propylene and pure benzene provide effective risk management tools for downstream industries, contributing to the stability and resilience of enterprises [3] - Since the implementation of the Futures and Derivatives Law on August 1, 2022, a total of 50 new futures and options products have been launched, increasing the total number of futures products to 152 [3][4] Group 3: Future Prospects - There is significant potential for further innovation in futures and options products, particularly in the area of green finance, with expectations for products like electricity futures and carbon emission rights futures [5] - The development of carbon emission rights futures is seen as crucial for enhancing the domestic carbon market and providing flexible hedging tools for enterprises [5]

Group 1 - The event "Capital Assistance, Lu Power Forward - 'Yujian Options' Training Class (Jinan)" was held to enhance the understanding and application of options knowledge among futures practitioners in Shandong [2][3] - The training aimed to address the increasing demand for refined risk management by enterprises due to heightened global economic uncertainty and commodity price volatility [2][3] - Zhengzhou Commodity Exchange (ZCE) has made significant progress in supporting high-quality development of the real economy through various initiatives in options business, including the launch of new options products and the introduction of innovative margin policies [3] Group 2 - The training covered a wide range of topics, including market operation, trading rules, options pricing principles, strategy application, and enterprise risk management [4] - Experts from various institutions provided insights into options strategies, market analysis indicators, and practical applications of options in enterprise risk management [4] - Participants reported that the training effectively combined theoretical knowledge with practical needs, enhancing their professional level in utilizing options tools for the real economy [6] Group 3 - The association plans to continue collaborating with ZCE and other futures exchanges to conduct multi-level and diverse training activities, strengthening the talent pool in the industry [6]

Core Viewpoint - Company A, a typical third-level trader in the sugar industry, is successfully navigating challenges by utilizing innovative risk management strategies, particularly through the use of sugar series options, which address cash flow issues and operational complexities faced by small and medium-sized enterprises (SMEs) in the industry [3][4][11]. Group 1: Challenges Faced by SMEs - SMEs are deeply entrenched in cash flow difficulties, needing to prepay for sugar while extending credit terms to downstream clients, which ties up significant working capital [4]. - Limited human resources and organizational structures hinder effective risk management, leading to over-reliance on individual judgment rather than systematic processes [4]. - SMEs are reluctant to invest heavily in risk management, seeking to transfer large risks at minimal costs, which often results in a gamble on market conditions [4]. - The fragmented nature of SME operations creates mismatches in risk timelines, complicating effective risk management [5]. Group 2: Innovative Hedging Strategies - In March, Company A faced a procurement of 400 tons of sugar at a spot price of 6150 CNY/ton, with a sales contract locked at 6200 CNY/ton, leading to a breakeven point of 6180 CNY/ton [6]. - The company opted for a sugar series call option with a strike price of 6200 CNY/ton, paying a premium of 27.5 CNY/ton, totaling 11,000 CNY, significantly reducing capital requirements compared to traditional futures hedging [7][11]. - The series options strategy saved approximately 97% in capital compared to futures hedging, while also avoiding margin call risks [7][11]. Group 3: Successful Implementation and Results - On April 3, the sugar market saw a price increase to 6170 CNY/ton, allowing Company A to realize a profit of 8800 CNY from the options while incurring an 8000 CNY loss from the spot purchase, resulting in a net gain of 800 CNY [10][11]. - The use of sugar series options not only mitigated the risk of price increases but also alleviated cash flow pressures, allowing for better operational flexibility [11]. - The strategy employed by Company A redefined risk management paradigms for SMEs, demonstrating that effective hedging can be achieved with lower capital requirements and reduced operational complexity [11][12]. Group 4: Call for More Options Products - Following the success of the sugar series options, Company A advocates for the introduction of similar series options for other commodities, such as vegetable oil, to enhance risk management tools available to SMEs [14].