Shanghai Futures Exchange Successfully Holds First Hedging Strategy Simulation Practice Activity

Recently, the Shanghai Futures Exchange successfully held its first simulated hedging scheme activity. The event focused on the difficulties and pain points faced by physical enterprises in hedging and aimed to enhance the practical service capabilities of futures companies for the real economy.

This activity centered on the actual needs of risk management for physical enterprises, divided into two main units: general scenarios and special scenarios. The general scenarios involved 16 futures products, with leading industry companies providing their operational risk exposures, and futures companies designing hedging schemes tailored to these exposures. The special scenarios involved selected partner enterprises of each futures company, tracking their entire production and operation processes to offer suitable hedging solutions. A total of 161 schemes were collected, including 89 for general scenarios and 72 for special scenarios. After rigorous comprehensive evaluation, 54 representative schemes were selected.

The event adhered to a service-oriented approach, focusing on the difficulties and pain points in enterprise hedging activities, and proposing targeted solutions. First, it precisely identified the actual needs of enterprises, thoroughly analyzing the challenges in practical hedging operations to broaden their risk management ideas. Second, it strengthened professional service capabilities through direct exchanges and guidance between scenario enterprises and external experts, promoting a deep integration of theory and practice, and improving the scheme design and operational skills of futures companies. Third, it fostered market development efforts, gaining broad attention from industry associations and listed companies, encouraging mutual promotion between physical enterprises and futures companies, and building a market service system that links futures and spot markets.

Moving forward, the Shanghai Futures Exchange will continue to collect and publish relevant case results, further deepen research related to serving the real economy, create a healthy ecosystem of research and business integration, and work together with all market participants to continuously improve the quality and efficiency of futures market services for high-quality economic development.

2025 Hedging Scheme Simulation Activity Evaluation Results

(1) General Scenario Unit

Outstanding Schemes

Jinrui Futures (Copper), Yangtze River Futures (Aluminum), Zhejiang Merchants Futures (Zinc), Dongzheng Futures (Lead), Guotai Junan Futures (Nickel), Huabao Futures (Tin), Huatai Futures (Alumina), Huabao Futures (Rebar), Huishang Futures (Crude Oil), Maike Futures (Fuel Oil), Galaxy Futures (Petroleum Asphalt), Huawen Futures (Synthetic Rubber), Huawen Futures (Natural Rubber), Jianghai Huixin Futures (Pulp), Huatai Futures (SCFIS European Line)

Encouraged Schemes

China International Futures (Copper), CITIC Construction Investment Futures (Copper), Shanghai Zhongqi Futures (Copper), GF Futures (Copper), Zhengxin Futures (Aluminum), Dongwu Futures (Aluminum), Guomao Futures (Rebar), Everbright Futures (Rebar), Yide Futures (Rebar), Western Futures (Rebar), China Eastern Airlines Futures (Crude Oil), Green Dahua Futures (Fuel Oil), Everbright Futures (Petroleum Asphalt), Zhongtai Futures (Natural Rubber), Huishang Futures (Natural Rubber), Dongzheng Futures (SCFIS European Line), Maike Futures (SCFIS European Line)

(2) Special Scenario Unit

Outstanding Schemes

Dongwu Futures (Copper), First Capital Futures (Aluminum), Huatai Futures (Rebar), Nanhua Futures (Petroleum Asphalt), Galaxy Futures (Synthetic Rubber), Dongzheng Futures (Natural Rubber)

Encouraged Schemes

Chang’an Futures (Copper), COFCO Futures (Copper), Hongyuan Futures (Copper), China Merchants Futures (Aluminum), Jinrui Futures (Aluminum), Xingye Futures (Alumina), Huabao Futures (Zinc), Guohai Liangli Futures (Rebar), Zhongtai Futures (Rebar), Guoxin Futures (Rebar), Yangtze River Futures (Rebar), Zhengxin Futures (Rebar), Yide Futures (Hot Rolled Coil), China Eastern Airlines Futures (Crude Oil), CITIC Futures (No. 20 Rubber), CITIC Construction Investment Futures (SCFIS European Line)

(Shanghai Futures Exchange)

(Edited by: Xu Nannan)

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