Rethinking Of Minmetals Futures’ Development Strategy

With over 20 years of development, commodities futures, financial futures and their derivatives have been defined as the basic and necessary tools for the state risk management. China’s futures market is stepping into the new era of innovation. The introduction of new futures products, new business and the development of multi-layers market system have promoted the extend and scale of the futures market in serving the national economy. The rapid development of China’s economy provides a historical opportunity for the futures sector. In this context, the unsustainable’extensive’ development model needs the strategic transformation. Look to the future, the supervisory policies of futures sector tend to be more relaxed in the long-term and the innovative environment for the business and trades tend to be more active, which means that channel brokages will be no longer the solely business for the futures companies. A series of changes include:the innovation of trade categories is spring up; many innovative financial futures products (such as state debt futures and interest rate futures) are emerged; investment consulting, assets management and outside futures agent businesses are established, which enriches the profit model and creates the necessary preconditions for enhancing profit rate of the futures companies. Against the current background, futures section is stepping into its’golden era’, the mainstream is occupied by those companies with more valued clients and stronger R&D capabilities. Minmetals Futures is on the turning point of strategic transformation of the futures sector. Therefore, it is essential for the Minmetals Futures to wisely choose the strategic position, make proper development strategies and fully exploittheits its advantages.On the basis of SWOT analysis, the thesis will discuss the status quo of Minmetals in order to set the strategies that can keep its conventional advantages as well as meet the long-term needs of the development of future sector. In other words, making the Minmetals-a traditional commodities future company -- both keeping its traditions and striding forward to the diversities, so as to strengthen its competitiveness in the future sector.