The Way China's Futures Market Serves the Real Economy

The futures market was initially established to address the limitations of the spot market and to serve the real industry in the supply side of raw material stability. With the development of the financial system, futures as major financial derivatives and global markets are highly connected. Previously, scholars have conducted many in-depth studies on the role played by the futures market, while this paper mainly focuses on China, focusing on the impact of the futures market on the real industry. The futures market has matured over the past three decades of development in China to become a major derivative trading market. The role of the financial market is ultimately implemented to serve the real industry. This paper focuses on the system of the futures market in China, and the core function of the futures market, and argues how the futures market can serve China's real economy. By reviewing the previous studies, this essay summarises the main roles of the futures market and provides suggestions for the development of the futures market in China based on the current situation of the Chinese market.