By Zhang Shiguo & Yang Qi, Research Team on “Promoting the Supply-Side Structural Reform of China’s Futures Market”, Research Institute of Economics, Management World Magazine

Research Report, No.5, 2021 (Total 6070) 2021-1-12

Abstract: For more than 30 years, China’s futures market has developed from scratch and expanded in scale, playing a key role in supporting the development of the real economy through price discovery and risk aversion. As China’s economic development has entered a new stage and the landscapes at home and abroad have seen major changes, the insufficient, unbalanced and unsound development of China’s futures market has become more prominent. Structural problems on the supply side, such as inflexible product listing mechanisms, lagging development of options tools, weak overall strength of futures companies, low level of internationalization and unsound legal systems remain to be addressed. To further enhance the capability of the futures market for supporting high-quality development of the real economy, related departments need to promote the supply-side structural reform of the futures market to assist the real economy effectively, accelerate the introduction of the Futures Law, improve institutional rules and regulatory mechanisms, develop over-the-counter commodity derivatives and support futures companies to expand to serve the high-quality development of China’s economy.

Keywords: futures market, supply side, policy options