Core Insights - The awareness of risk management among A-share listed companies is increasing due to heightened volatility in commodity prices, leading to a significant rise in the number of companies engaging in futures hedging [1][3] Group 1: Company Engagement in Hedging - A total of 1,782 A-share listed companies have issued announcements related to hedging in the first 11 months of this year, an increase of 279 companies compared to the entire previous year, representing an 18.6% growth [1][3] - Notable companies such as Fuan Energy, New Hope Liuhe, Longi Green Energy, and Sany Heavy Industry have recently approved high-value hedging plans for 2026, with Fuan Energy's maximum contract value reaching up to 12 billion RMB [1][2] - New Hope Liuhe plans to utilize a hedging limit of up to 4.7 billion USD for various commodities including Brent crude oil and natural gas, while Longi Green Energy and Sany Heavy Industry have also set significant hedging limits for their raw materials [2][3] Group 2: Risk Types and Industry Distribution - The primary risk type targeted by companies is exchange rate risk, followed by interest rate and commodity risks, with 1,311, 517, and 481 companies respectively addressing these risks in their hedging announcements [3] - The electronics, basic chemicals, power equipment, machinery, and pharmaceutical industries have the highest number of companies engaging in hedging activities [3] Group 3: Insurance Sector Participation - Insurance funds are increasingly participating in the futures market, with over 30 domestic insurance institutions actively using tools like government bond futures and stock index futures for hedging [5] - In the first 11 months of 2025, the number of new accounts opened by insurance funds in the futures market increased by 166%, marking a historical high in effective account growth [5] - The ongoing participation of insurance funds is expected to enhance market liquidity, stability, and participant structure, contributing significantly to the long-term healthy development of China's futures market [5][6]

Core Viewpoint - The company plans to hold a board meeting on December 10, 2025, to review a proposal for the commodity hedging limit for 2026, which will be submitted for shareholder approval [1] Group 1: Proposal Details - The proposed hedging limit for 2026 is estimated at $4.7 billion, which can be reused and will be funded by the company's own capital [1] - The trading period for the hedging activities will be 12 months from the date of shareholder approval [1] - The commodities involved in the trading include BRENT crude oil and JKM natural gas, with trading types encompassing swaps and options [1] Group 2: Risk Management - The company's engagement in this hedging business aims to mitigate price volatility risks [1] - The company acknowledges potential operational and credit risks associated with these activities and has established corresponding risk control measures [1]