Exploring Pathways for Guangxi to Help ASEAN Enterprises Use China's Futures and Derivatives Markets for Risk Management

Yukun Luo; Siqi Zhou

doi:10.54097/c9g4xb26

Authors

Yukun Luo School of Economics, Guangxi University, Nanning 530004, China
Siqi Zhou School of Economics, Guangxi University, Nanning 530004, China

DOI:

https://doi.org/10.54097/c9g4xb26

Keywords:

ASEAN enterprises, Guangxi, China's futures and derivatives markets, risk management, pathway exploration

Abstract

As the Protocol upgrading the China–ASEAN Free Trade Area (CAFTA) to Version 3.0 takes effect and the dividends of the Regional Comprehensive Economic Partnership (RCEP) continue to be released, the need to manage price risk in bilateral commodity trade has become more urgent. ASEAN's domestic futures and derivatives markets remain immature, and a persistent "institutional mismatch" separates ASEAN industry from the European and American markets it has traditionally relied on for hedging, while China's futures market is increasingly well placed to absorb this demand. This paper examines how Guangxi, as a land-and-sea hub linking China and ASEAN, can help ASEAN enterprises manage risk through China's futures market. It finds that Guangxi enjoys policy, industrial and geographic advantages that make it a natural "test field" and "bridgehead" for extending Chinese futures services to ASEAN, but still faces gaps in dedicated policy and funding, weak industrial clustering, cross-border infrastructure shortfalls, and slow futures–spot integration. To address these constraints, the paper proposes a pathway built on four pillars: cross-border cooperation rules, market infrastructure and services, technical and talent support, and outreach and promotion — together aimed at systematically empowering ASEAN enterprises to manage market risk, and offering a reference for a "Guangxi platform + Chinese futures + ASEAN industry" paradigm that supports a closer China–ASEAN community of shared future.

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