Study On Chinese Agricultural Futures Market Efficiency

The futures market has an increasingly important effect on the world economy.As an important tool for price discovery and risk aversion,the futures market has been the obbligato composition of modern economic system,and it has the unique function while it can’t be replaced by other markets.Corn is one of the most important grain varieties,occupying a very important position in agricultural production.Since 2004 re-listing,corn futures has been an important variety of futures markets.The volatility of international commodity prices also led to fluctuations in the price of China’s futures market,after the global financial crisis.The corn futures prices fluctuated sharply in 2008,affected by the financial crisis.This paper aims to study the effectiveness of Chinese corn futures market from the corn futures market price volatility,corn futures market price discovery function,and corn futures market risk aversion three angles on the financial crisis.Through comparative analysis results of three time periods,further illustrate what effect the financial crisis impact on the effectiveness of China’s corn futures market.The results show that under the impact of the financial crisis,China’s corn futures market price volatility continued weak,long-term memory of its futures market still weak,affected by the impact of relatively short duration.Between our corn futures prices and spot prices have no long-term equilibrium relationship,the futures market price discovery function affected.Corn futures prices and spot market prices are highly correlated,with the hedging conditions,but its effective hedging is inefficient,risk aversion function decline.According to the findings,the paper pointed out that the regulators should continue to strengthen the regulation of risk provisions,establish a sound regulatory system to protect the healthy operation of the futures market,improve the quality of the corn futures market participants economy.