The latest data from the China Futures Association shows that in the first four months of this year, the cumulative trading volume of the national futures market was 2.658 billion lots, a year-on-year increase of 22.19%; The cumulative transaction volume was 232.2 trillion yuan, a year-on-year increase of 28.36%, of which the monthly transaction volume in April was 70.18 trillion yuan, a year-on-year increase of 23.69%. Against the backdrop of increasing external risk shocks, China's futures market has shown a dual upward trend in both volume and price, demonstrating strong vitality and resilience. As of April this year, there are 146 listed futures and options products in China, covering more than 60 industrial chains. Green futures products such as industrial silicon and lithium carbonate effectively serve the risk management needs of the new energy industry; In the field of financial derivatives, CSI 1000 stock index futures, 30-year treasury bond bond futures and other varieties contributed significantly, and the turnover of China Financial Futures Exchange accounted for 28.79% of the whole market. The risk management efficiency of futures markets is highlighted. Physical enterprises adopt a "combination of futures and cash" business model, controlling risks and refining operations through futures hedging, basis price trading, and other methods, to safeguard the sustainable development of enterprises and support stable profits. Data shows that as of the end of 2024, 1408 listed companies in China have issued hedging related announcements, and the number of enterprises using the futures market to hedge risks continues to increase. China is the country with the most complete global commodity industry chain, and has established a complete industrial chain layout for commodity production, trade, supply chain, and risk management. In a complex external environment, significant fluctuations in commodity prices will become the norm, "said Wu Haojun, Secretary of the Party Committee and General Manager of COFCO Futures. COFCO Futures continues to explore the innovative integration of futures and derivative instruments with the grain industry supply chain, and helps industrial enterprises manage price risks by leveraging the synergistic advantages of futures options and on-site and off-site tools. One of the basic functions of the futures market is to discover prices. The huge and active market system generates price signals that are a good reference for enterprises to analyze the industry and market prospectively. In addition to macro price signals such as stock index futures and treasury bond futures, enterprises will have a broader view of price analysis. Enterprises should improve their research on their own industries and develop forward-looking business strategies based on the 'broad and profound' price system of the futures market. Ma Wensheng, Chairman of Xinhu Futures, suggested that physical enterprises should incorporate risk management concepts into their daily production and operation, make good use of futures market hedging risks, and increase the certainty of enterprise development. Ma Wensheng stated that after using derivative tools, physical enterprises can shift from relying on spot trading as one leg to relying on spot trading, futures, options, and basis trading as four legs, and their development will be more stable. The mode of operation will also shift from simple business management to five aspects of management: business management+exposure management+basis management+volatility management+scale management, from one source of profit to five sources of profit. In an environment of overcapacity in some industries and weakened external consumption, companies may operate at a loss, but profits from one or two factors such as exposure, basis, volatility, and scale can make up for the loss, forming innovative business models such as equity trading, and achieving a transition from uncertainty to certainty in business operations. Faced with the complex environment of global industrial chain restructuring and trade frictions, the cross market transmission of risks has become increasingly evident, and many companies' hedging needs are difficult to fully meet through a single market, requiring more mechanisms and tools to hedge and release risks. ”Nanhua Futures Chairman Luo Xufeng said. At present, 24 domestic specific varieties have been introduced to foreign traders in China, and QFII/RQFII can participate in 75 futures market varieties. Huang Zhiming, Chairman of Yong'an Futures, suggested accelerating the launch of international varieties in key industrial chains, optimizing delivery systems, and enhancing market thickness. Luo Xufeng pointed out that the futures industry needs to build a dual circulation service capability of "domestic+cross-border". The demand for refined hedging in enterprises has become more complex. Dou Changhong, Chairman of CITIC Futures, believes that futures companies should strengthen internal control and compliance, continuously optimize risk monitoring and warning mechanisms, and rely on professional derivative service capabilities to customize diversified and multi-level risk management plans for enterprises. (New Society)