| Since 2015,the Chinese government has formulated specific guidelines for supply-side reform in the light of domestic economic overcapacity and structural contradictions,and has commenced the comprehensive structural optimization of economy.Aluminum trading enterprises are inevitably affected by the guidelines.This paper studies how state-owned enterprises(SOEs)shall take advantage of hedging facilities to create greater profitable potential with proper risk control.As the gradual implementation of the reform and opening up policies,the financial industry has more development space,with business diversification as an important development trend.Many SOEs have previously been challenged by private and foreignfunded enterprises.SOEs must operate from an international perspective,so that they can remain invincible.Futures hedging is a new business,but it is quite important,given that it is closely linked with aluminum spot and is an important guarantee for enterprise's profits.However,this new business also brings a lot of security risks to the industry,posing a huge hazard to the stable development of enterprises.Therefore,a sound risk control system is significant to the futures business development.Taking SPICAL as an example,this paper analyzes the current development of the company in the aluminum industry with PEST Analysis.According to the company's existing futures system and futures hedging program,internal risks are summarized in a bit to optimize,explore and build a perfect and effective risk control system for futures hedging.Perfect internal control system and hedging risk control scheme can help reduce the operational risk of futures hedging,safeguard the interests of the company,promote steady development,and lay the foundation for range expansion.In addition,they can also provide practical reference for the implementation planning of hedging risk control in the industry,and test the maturity and feasibility of SPICAL's hedging risk control. |
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