Analysis of Industrial Organization in China's Futures Industry in 2005

Author: Institute of Industrial Economics, Shanghai University of Finance and Economics
Publisher:
Publish Date: 2005-03-01
Features: This report is divided into the following nine parts:
Chapter 1 is titled "Modern Futures Industry and Its Industrial Organization." It provides an in-depth analysis of the fundamental nature of the modern futures industry, appropriately describing and analyzing the general approach and key characteristics of industrial organization analysis in the futures industry. At the same time, through international comparisons and in conjunction with relevant theories, it explains the development trends of the modern futures industry and the basic characteristics of developed futures markets. Chapter 2 is titled "Futures Industry in the Process of China's Marketization." It briefly describes the process of China's marketization and comprehensively reviews the growth history of China's futures industry in stages, offering a relatively in-depth discussion of the current state and characteristics of the industry. It also presents several superficial evidence of the underdeveloped state of China's futures market. Chapter 3 is titled "Government Regulation of China's Futures Industry and Its Consequences." It provides a relatively complete analysis of the basic rationale for government regulation of China's futures industry, the legal framework of regulatory policies, and policies on entry regulation, product regulation, and trading regulation. On this basis, it further examines some characteristics of China's futures industry under government regulation and points out that excessive and improper regulation are the root causes of the underdevelopment of China's futures market. Chapters 4 and 5 are titled "Industrial Organization of China's Futures Exchange Market." They analyze the unique organization and nature of exchanges as a special feature of the futures industry and examine the market relationships between exchanges in a relatively comprehensive manner. Additionally, they evaluate the overall performance of China's futures exchange market. Chapter 6 is titled "Market Structure of China's Futures Brokerage Industry." It separately examines and analyzes the scale structure, product differentiation, degree of entry barriers, and degree of exit barriers of China's futures brokerage industry, as well as the overall market power of buyers. Chapter 7 is titled "Market Behavior of China's Futures Brokerage Companies." It provides a comprehensive analysis of the behavior of futures brokerage companies, including pricing and fees, consulting services, vertical trading, mergers and alliances, and collusion, and examines the nature and performance of these behaviors. Chapter 8 is titled "Market Performance of China's Futures Brokerage Industry." It conducts a preliminary analysis and evaluation of the market performance of China's futures brokerage industry from four aspects: performance growth and volatility, pricing and costs, profits and profit margins, and technological progress. As a fundamental conclusion of this report, Chapter 9 provides a comprehensive assessment of the industrial organization of China's futures industry and further analyzes the characteristics of competition and monopoly in the underdeveloped market. Chapter 10, from the perspective of policy recommendations, emphasizes the important impact of industrial organization on the development of China's futures industry and proposes basic directions and approaches for the rationalization of the industrial organization of China's futures industry. It also offers targeted policy recommendations on related issues. This research primarily adopts an empirical analysis method, mainly using data and practical materials for economic research. We also apply theoretical analysis methods in some cases, conducting theoretical deduction, reasoning, and induction within specific frameworks for specific issues. Regarding the empirical analysis process, due to the starting point and a series of characteristics of this research, we also extensively employ normative analysis methods while conducting empirical research.