Analysis on the current situation, problems and potential solutions for the Chinese precious metals futures market

Abstract

Since 1980, China's futures market has developed vigorously under the influence of the reform and opening-up system. Over the past forty years, the Chinese futures market has been on a steady rise and has become an important part of the Chinese economy. Since the outbreak of COVID-19 in 2020, the global economy has been hit by significant inflation in various countries, and the anti-inflationary properties of precious metals futures have played a great impact during this special period. This paper examines a series of problems in the precious metals futures market in China from the current situation of the market and proposes possible solutions.  With China's accession to WTO, the globalization of China's financial market has accelerated, and in the process of acceleration has also brought many hidden dangers to China's financial market. China's financial market is not well regulated, thus leading to a chaotic situation. Therefore, it is important to analyze the current problems of the precious metal futures market through the current situation of China's precious metal futures market to stabilize the development of China's precious metal futures market.