Abstract
China has been a member of the World Trade Organization (WTO), and now more attention will be diverted to the capital market of China. In this article, we discuss the degree of association of Chinese commodity futures markets with the international futures markets, with which we take the commodity exchange of Dalian and the Chicago Board of Trade (CBOT) as examples. Based on the collected data, we establish the cointegration relation between the close price and open interest in food commodity futures markets. Furthermore, we find that there is a cointegration relation between the soybean futures price of Dalian and the soybean spot price of Heilongjiang in China. These findings have demonstrated the principle of convergence between the futures price and the spot price based on econometric methodology.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
