Research On Pricing Power Of Copper In China Under The Background Of Financialization Of Bulk Commodities

With the rapid economic development in recent years,China has become the first importer of iron ore,the first importer of soybean,the first importer of oil,the first producer of steel and the first consumer of copper after joining the WTO.China joins the ranks of global commodity trading powers and has access to global resources.In the international trade of bulk commodities,China,as a big buyer,does not have a voice in the pricing.It passively accepts the international price dominated by developed countries,which causes huge losses to China’s industrial development and national economy.Improving the pricing power of bulk commodities is of great significance to the development of Chinese enterprises,industrial security and economic stability.Stand under the background of commodity financialization,this article has been clear about the commodity pricing power definition,from the point of view of macro analysis of the commodity pricing power loss phenomenon,in the futures pricing theory on the basis of analyzing the characteristics of price conduction mechanism,and then from the Angle of the micro copper phase of the spot market,discusses the copper industry status and factors affecting copper supply and demand,trade,commodity financialization of trend,the London futures exchange(LME)copper futures market leading international copper prices.Finally,taking the csi 300 index,dow Jones industrial average index and copper futures spot price as samples on July 24,2003,solstice and February 13,2019,VAR model was established to analyze the price transmission effect of domestic and foreign stock markets on China’s copper futures spot market.In terms of the price transmission of the stock market to the copper futures market,the international stock market has a stronger influence and a longer time than the domestic stock market.In terms of the price transmission of futures market to the current copper market,the international futures market has greater influence and longer time than the domestic futures market.It proves that under the background of financialization,the international copper price dominated by London futures exchange(LME)copper futures is further divorced from the market fundamentals of China,and the lack of pricing power of copper in China.It puts forward Suggestions on four aspects: financial institutions,investment subjects,regulatory agencies and production enterprises.