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Article http://dx.doi.org/10.26855/jhass.2023.12.032

The Study on the Pricing of Commodity Futures and the Direction of Development in China

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Yangtong Zhou

Shenzhen Academy of International Education, Shenzhen, Guangdong, China.

*Corresponding author: Yangtong Zhou

Published: January 16,2024

Abstract

China's futures market, a vital component of the modern market economy, has undergone a challenging and delayed evolution since its inception during the reform and opening up era. Despite its significance in constructing China's market system, in-depth theoretical research on the country's futures market remains limited. Given that it has an overwhelming role in constructing China’s market, an objective assessment of its operational efficiency becomes imperative. A well-regulated and mature futures market should exhibit a sustained equilibrium relationship between futures and spot prices. Therefore, this paper takes this as the object of research, firstly, it discusses the importance of the long-term equilibrium relationship between the two. Secondly, it proposes four research methods for the equilibrium relationship between the two. Thirdly, it takes copper, a futures product, as the object of research, and conducts an empirical study on the long-term equilibrium relationship between spot prices and futures prices, finally, it puts forward three suggestions for the development and improvement of China's futures market, in order to provide a reference for the development and improvement of the futures market.

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How to cite this paper

The Study on the Pricing of Commodity Futures and the Direction of Development in China

How to cite this paper: Yangtong Zhou. (2023) The Study on the Pricing of Commodity Futures and the Direction of Development in ChinaJournal of Humanities, Arts and Social Science7(12), 2569-2574.

DOI: http://dx.doi.org/10.26855/jhass.2023.12.032