Study on the Utilization and Impact of Financial Derivatives in Chinese Listed Companies

In recent years, Chinese companies have been facing increasing risks in the financial market. In addition, international commodity prices fluctuated dramatically due to the geopolitical and global economic situation, further increasing the business risks of enterprises. Against this background, the...

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Main Author: Sun Pengpeng
Format: Article
Language:English
Published: EDP Sciences 2025-01-01
Series:SHS Web of Conferences
Online Access:https://www.shs-conferences.org/articles/shsconf/pdf/2025/09/shsconf_icdde2025_02019.pdf
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author Sun Pengpeng
author_facet Sun Pengpeng
author_sort Sun Pengpeng
collection DOAJ
description In recent years, Chinese companies have been facing increasing risks in the financial market. In addition, international commodity prices fluctuated dramatically due to the geopolitical and global economic situation, further increasing the business risks of enterprises. Against this background, the importance of financial derivatives as a risk management tool is becoming more and more prominent, and the demand for their application by enterprises is rising. This paper systematically analyses the development status, structure and change trends of the financial derivatives market of Chinese listed companies and discusses how enterprises can optimize risk management and financial decision-making through derivatives. The study finds that the number of listed companies disclosing derivative financial assets grows significantly between 2019 and 2023, and the use of financial derivatives expands gradually, especially in the areas of interest rate, equity and currency derivatives. The findings of this study provide a reference for firms to formulate more effective risk management strategies and empirical support for policy makers to optimize the regulatory system and market structure.
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series SHS Web of Conferences
spelling doaj-art-e33c9c78855d48adb5ae5c541bcb0c742025-07-04T09:35:57ZengEDP SciencesSHS Web of Conferences2261-24242025-01-012180201910.1051/shsconf/202521802019shsconf_icdde2025_02019Study on the Utilization and Impact of Financial Derivatives in Chinese Listed CompaniesSun Pengpeng0Business School, NingboTech UniversityIn recent years, Chinese companies have been facing increasing risks in the financial market. In addition, international commodity prices fluctuated dramatically due to the geopolitical and global economic situation, further increasing the business risks of enterprises. Against this background, the importance of financial derivatives as a risk management tool is becoming more and more prominent, and the demand for their application by enterprises is rising. This paper systematically analyses the development status, structure and change trends of the financial derivatives market of Chinese listed companies and discusses how enterprises can optimize risk management and financial decision-making through derivatives. The study finds that the number of listed companies disclosing derivative financial assets grows significantly between 2019 and 2023, and the use of financial derivatives expands gradually, especially in the areas of interest rate, equity and currency derivatives. The findings of this study provide a reference for firms to formulate more effective risk management strategies and empirical support for policy makers to optimize the regulatory system and market structure.https://www.shs-conferences.org/articles/shsconf/pdf/2025/09/shsconf_icdde2025_02019.pdf
spellingShingle Sun Pengpeng
Study on the Utilization and Impact of Financial Derivatives in Chinese Listed Companies
SHS Web of Conferences
title Study on the Utilization and Impact of Financial Derivatives in Chinese Listed Companies
title_full Study on the Utilization and Impact of Financial Derivatives in Chinese Listed Companies
title_fullStr Study on the Utilization and Impact of Financial Derivatives in Chinese Listed Companies
title_full_unstemmed Study on the Utilization and Impact of Financial Derivatives in Chinese Listed Companies
title_short Study on the Utilization and Impact of Financial Derivatives in Chinese Listed Companies
title_sort study on the utilization and impact of financial derivatives in chinese listed companies
url https://www.shs-conferences.org/articles/shsconf/pdf/2025/09/shsconf_icdde2025_02019.pdf
work_keys_str_mv AT sunpengpeng studyontheutilizationandimpactoffinancialderivativesinchineselistedcompanies