China's Corn Futures Market Drives Spot Market Prices with Information Spillover
The study looked at how information moves between China's corn futures market and spot market. They found that the prices in these markets affect each other, with futures prices leading spot prices. This shows that China's futures market helps determine prices. However, they also found that trade practices can control risk but may impact how futures prices react to market information. The study suggests that China's futures market should improve its systems and rely more on market mechanisms to manage risk effectively.