One of the Series Reports on China's Industrial Development -- Industrial Organization Analysis of China's Futures Industry

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 sections:
Chapter 1 is titled "Modern Futures Industry and Its Industrial Organization." It delves into the fundamental nature of the modern futures industry, providing an appropriate description and analysis of the general approach and key characteristics for analyzing the industrial organization of the futures industry. Additionally, 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 before comprehensively reviewing the growth history of China's futures industry in stages, offering an in-depth discussion of its current status and characteristics, and presenting several surface-level evidences 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, the legal framework of regulatory policies, and policies on entry regulation, product regulation, and trading regulation. On this basis, it further examines several 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 entity in the futures industry and its formation, as well as conduct a comprehensive examination of the market relationships between exchanges. 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, degree of exit barriers, and overall market power of buyers in China's futures brokerage industry.
Chapter 7 is titled "Market Behavior of China's Futures Brokerage Companies." It provides a comprehensive analysis of the pricing and fees, consulting services, vertical trading, mergers and alliances, and collusion of futures brokerage companies, as well as an examination of 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 an overall evaluation of the industrial organization of China's futures industry and further analyzes the characteristics of competition and monopoly in light of the underdeveloped market nature.
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 its industrial organization. It also offers targeted policy recommendations on related issues.
This study primarily adopts an empirical analysis method, mainly using data and practical materials for economic research. In some cases, we also apply a theoretical analysis method, which involves deductive reasoning, inference, and induction within specific frameworks to address specific issues. Regarding the empirical analysis process, due to the starting point and a series of characteristics of this study, we also extensively employ normative analysis methods while conducting empirical research.