Research On The Influence Of Grain Financialization On Chinese Grain Security

As an important part of national strategic security,food security has been attached great importance by the CPC Central Committee and The State Council.In recent years,China has made many important arrangements for ensuring food security,and governments at all levels,relevant departments and enterprises have paid close attention to this issue.They have taken up their political responsibility for food security,formulated and introduced a series of policies and measures to effectively cope with the impact of fluctuations in international food prices on C hina’s food security,and ensured absolute national food security.However,with the deepening of globalization and financialization,the food market is gradually connected with the financial market,the financial attribute of food is increasingly prominent,and the volatility of food prices is more and more related to the entry of finance and capital into the food market,which is the outstanding performance of food financialization.The financialization of food refers to the fact that in addition to the commodity property of food as a product of labor,it is affected by financial capital and increasingly presents the property of financial products and financial derivatives.As a kind of commodity,food is often affected by supply and demand.However,in the context of financialization,the financial attribute of food itself accounts for an increasing proportion,and even exceeds the commodity attribute.This process is called food financialization.That is,food financialization is a process of quantitative change.In the process of financialization,a large amount of capital flows into the grain market and speculation increases,leading to increased grain price volatility,which fundamentally changes the way of grain pricing,and the financial attribute of grain becomes an important factor determining the grain market price.This paper analyzes the impact offood financialization on food market and the impact of food price from the background of food financialization.and then analyzes the impact of food financialization on food security in China.Based on the review of relevant literature,this study analyzes the relationship and internal mechanism between food financialization and food prices and food security through the method of normative research,and puts forward the hypothesis of empirical research based on this.This paper creates an empirical analysis model.Based on the relevant data of China’s grain futures market price,futures turnover,international grain period spot price index and so on in the past five years,an empirical model is established.By analyzing the regression results,the conduction mechanism of grain financialization to grain price is analyzed,and then how to influence China’s grain security through this conduction mechanism.It is found that domestic grain futures price,currency supply,RMB exchange rate and international grain price are the main variables of domestic grain price transmission fluctuation under grain financialization.Based on these conclusions,the study concludes that we should make full use of food financialization tools to ensure our food security:1.Establish perfect grain financial service system 2.Make full use of our grain futures market price discovery and circumvent risk function 3.Use big data to establish and improve the grain situation warning system under the background of grain financialization 4.Strengthen the government and industry supervision of China’s grain futures market 5.Cultivate various levels of talents in grain industry under the background of grain financialization 6.Actively cultivate Chinese grain backbone enterprises and strive to further improve the discourse power of international grain trade and occupy more dominant position.