Foreign central bank yesterday released the "China Rural Financial Services Report 2010", the report proposed to speed up the development of agricultural futures markets, futures for agricultural products have been listed do in-depth and meticulous manner, improve the market structure of varieties, give full play to the price discovery role of futures markets, decentralized production and marketing of agricultural products the process of market risk.
The report notes that with the development of modern agriculture, rural credit markets innovative products and services, the problem of inadequate methods continue to appear, relying solely on the credit market for financing as the main production and management in rural areas face common problems. Slower development of securities markets led to the development of rural areas lag behind the direct financing market, affecting the businesses in rural areas and better foundation for more financial support and further expand production.
To this end, the report recommends the development of credit, securities, insurance, futures, guarantee the division of labor with, and complementary system of rural financial markets, strengthen financial risk management functions. Rural financial market in order to change the current banking credit-based indirect financing model, the proportion of direct financing extended to explore a collection of small and medium enterprises issue bonds, a collection of notes, listing the capital market financing channels. In addition, continuously improving the agricultural insurance system, innovative agricultural insurance products, and explore the establishment of rural credit and agricultural insurance combined bank and insurance mechanisms for interaction. Further improve the rural credit markets, insurance markets, securities and futures market, the formation of the credit market, insurance market and the securities and futures markets complement each other in agricultural risk management system.
The report points out, China's futures markets 13 varieties of agricultural futures, sugar, cotton and oil covered the basic system for agricultural futures. In 2009, China's total turnover of 1.235 billion agricultural futures hand, turnover 62.18 trillion yuan, accounting for the futures market volume and the total turnover of 57.2% and 47.6%. According to the U.S. Futures Industry Association's statistics, in accordance with the volume terms, China has become the world's largest agricultural futures market, increasing international influence. Overall, the agricultural futures market as an important agricultural component of the market system, continue to enhance its functioning, futures trading has also gradually become agribusiness an important means to avoid market risks.
