In his 2026 report on the work of the government, prime minister li referred to the need to promote the deeper integration of sti and industrial innovation and to strengthen the full life cycle of sti financial services. In may 2025, however, a number of policy initiatives were officially launched to accelerate the construction of a science and technology finance system that strongly supports high-level science and technology self-reliance, with particular emphasis on the key hub of capital markets to support direct financing for science and technology enterprises. In particular, futures and derivatives markets are developed in a prudent and orderly manner, providing them with risk hedge tools. In the opinion on strengthening regulatory risk protection for quality development in futures markets, transmitted by the state council office, it was emphasized that futures markets should better serve the high-quality economic development of the real, service-building and modernization of china。
Building a financial power requires “five big articles”, in which science and technology are the leading financial actors. It accelerates the transformation of results by channelling capital precision into hard technology and deciphering the key core technology “calculation”. As a strategic engine for winning competition from the major powers, science and technology finance is key to securing national security and shaping new advantages for future development. Although the futures market has not started in our country, futures trading is evolving from traditional risk management tools to become an important engine for financial development. It supports enterprise development throughout its life cycle through enabling technology enterprise risk management, channelling capital precision inputs, and its own deep integration with science and technology. In particular, the futures promotion path to financial creation is reflected in three main areas:
I. Enabling science and technology enterprises to refine risk management
Science- and technology-based enterprises are generally characterized by long r & d cycles, high technology overlaps and high cost sensitivity, which exposes them to considerable operational uncertainty in intense market competition. The diversified risk management tools offered by futures markets, such as the “stabilizers” of enterprises, can effectively smooth business fluctuations resulting from external shocks, and enable firms to free valuable resources from dealing with market risks, focusing on breakthroughs and innovations in core technologies。
First, futures markets can lock in critical costs and build “firewalls” for research and development. In hard-tech areas such as new energy sources and semiconductors, prices of key raw materials such as lithium, silicon and copper fluctuate sharply, often directly determining the earnings and losses of enterprises. Using commodity futures and options tools, science and technology enterprises can pre-empt future procurement costs and build cost hedge mechanisms. This not only avoids sharp increases in the prices of raw materials that erode profits, but also ensures the rigidity and continuity of the r & d budget, so that scientists and engineers do not have to interrupt the scientific and technological fight because of the tight financial chain。
Second, futures tools effectively manage exchange rate and freight risk and provide protection for science and technology. As china's global distribution of science and technology products deepens, uncertainty about exchange rate fluctuations and maritime transport costs becomes a key variable limiting export earnings. Through derivative instruments such as foreign exchange futures and containerized price index futures, enterprises are able to hedge against financial risks in cross-border transactions and to lock in the margins of overseas operations, thereby expanding international markets more narrowly and enhancing global competitiveness。
Finally, rich index derivatives provide new pathways to market value management and talent incentives. With the creation of 50 index futures, options, etc., on the ground, technology enterprises have more efficient market value management tools. These tools can be used by enterprises to smooth the irrational volatility of equity prices and preserve the image of capital markets; at the same time, stable equity prices are expected to create favourable conditions for the implementation of equity incentive schemes that will help attract and retain core r&d talent and stimulate team innovation。
In conclusion, the futures market is being deeply integrated into the technological and industrial chain and is becoming an important financial infrastructure that underpins the technological power。
Ii. Leveraging capital accumulation to improve the ecological aspects of investment financing
Futures markets, as a central component of modern financial systems, with their unique price discovery mechanisms and sustained product innovation capabilities, are becoming a key hub for channelling social capital precision to the field of science, technology and innovation, infusing dynamic energy to nurture new quality productivity。
Futures markets fully utilize the “guideline” of price signals. As a highly transparent and information-intensive trading place, futures markets integrate instantaneously into prices information on macroeconomic trends, changes in supply and demand in industries, and expectations of technology overlaps, through a full range of games on both sides. Such forward-looking price signals not only reflect the market's precision in predicting future supply and demand, but also provide “navigation” for strategic decision-making by more technological enterprises. Science and technology enterprises can optimize the direction of r & d based on futures price curves, lock the cost of raw materials or adjust the configuration of production capacity, thereby effectively avoiding market volatility risks, fine-tuning limited resources to the most marketable technology tracks and improving innovation efficiency。
The futures market builds “water reservoirs” that attract long-term financing by enriching investment targets. As financial innovation deepens, futures markets become increasingly linked to spot markets, greatly enriching the thematic investment toolbox. In particular, the introduction of derivatives such as 50 etf options and etf options on various industry topics has broken the previously single-sourced limits of investment. These tools provide sophisticated risk management tools and diversified asset allocation options for investors with different risk preferences, allowing long-term capital, such as insurance funds, social security funds and others, to venture into highly volatile science and technology. This not only injects an ever-present stream of “satisfactory capital” into sti, but also contributes to a high-level virtuous circle of “technology-industry-finance” that helps countries to win their initiatives in key core technological challenges。
Deepening science and technology empowerment, innovative service models
The application of financial technology has made futures services technology enterprises more precise and efficient. First, technology improves service efficiency and accuracy. Futures companies use technologies such as artificial intelligence, big data, etc., to build an integrated current management system to help technology enterprises achieve real-time linkages between inventories, futures positions and production plans. This makes risk management decisions more scientific and efficient. Second, to generate innovative business models. For example, “future + spot” supply chain finance, i. E. Helping enterprises to build up their assets, ease financial pressures and win valuable window periods for technology overlaps, through warehouse receipt pledges, stock preservation, etc. Finally, customized off-site derivatives. In response to the individual needs of science and technology enterprises, innovative models such as off-site options linked to industry-specific indices, “empowerment trade” and risk management are embedded in upstream and downstream cooperation to help build stable industrial ecosystems。
In order to better harness the role of futures in science and technology finance, shanghai can advance its policy recommendations by:
Increased product innovation and institutional availability. Exchanges and regulators should continuously study and introduce more futures options related to sti, such as indices or raw materials for emerging industrial chains such as artificial intelligence, human robots and others. At the same time, innovative derivatives such as r & d cost insurance, patent value hedges, are being explored。
It is important to develop a composite talent that understands futures and technologies. The deepening development of science-based finance requires expertise that understands both the logic of the science and technology industry and the know-how of derivatives. Higher education, futures companies and science and technology enterprises should strengthen their cooperation in the development of complex talent capable of tailoring risk management programmes to enterprises。
Increased investor education and risk awareness. For s & t smes, there should be systematic investor education to help enterprise management understand the nature of “risk management” in futures markets, rather than the “speculation profit” tool. Inducing enterprises to establish sound hedging and wind control systems and to adhere to the principles of “risk control and service owners”。
(author of the chinese academy of social sciences-shanghai people's government institute)
