W Group Copper Futures Hedging Scheme Design

At present,China's opening to the outside world has been intensified,and the market environment has undergone tremendous changes,which has led to increasing exchanges between domestic enterprises and the international community and closer ties with the international market.Especially,the emergence of the U.S.subprime mortgage crisis has greatly reduced the stability of the international financial market,and the fluctuation of commodity prices at home and abroad.The scope is very large.In the face of this environmental condition,the domestic commodity trading resource enterprises have encountered more difficulties and challenges in the course of operation and management.The difficulty of enterprise management has increased,and the daily operational risk remains high.Enterprises should establish a price risk prevention system to control the price risk at the lowest level.Futures market has hedging function.Enterprises often use this to avoid price risk.The main purpose of hedging is to hedge the risk of asset price fluctuation by using futures contracts with different directions in the process of buying and selling in futures and spot markets,so as to avoid adverse effects caused by price fluctuation and control the risk of price fluctuation to the lowest level.In the course of the research,this paper takes copper enterprises with high degree of internationalization,price fluctuation and huge amount of trading as the research object,which is representative.By investigating and analyzing the hedging status of several domestic copper industry listed companies,this paper summarizes and summarizes the existence of domestic enterprises in developing hedging business.On the basis of these problems,effective solutions are put forward.And take W Group as an example to carry out empirical research,through the detailed analysis of W Group's operating status and operating characteristics,and with the guidance of hedging theory,in view of the industrial characteristics of W Group upstream and downstream,a comprehensive and systematic study of copper futures hedging issues from different aspects of risk exposure,design.The W group copper hedging operation plan,so as to achieve reasonable hedging and avoid risks.