Case Analysis and Future Expectations of Chinese Enterprises Suffering Heavy Losses in the International Futures Market: Take the Bank of China and Tsingshan LME as Examples

Abstract

Affected by various factors such as COVID-19 epidemic and war, the world economic situation changes more frequently, which leads to increased instability in the international and domestic financial derivatives market. For the substantial changes in the international and domestic financial derivatives market, how to deal with sudden changes and analyze the failure cases in the change of financial derivatives is of far-reaching significance to the rapidly developing domestic financial derivatives market. By taking the Bank of China “crude oil treasure’ margin call liquidation case and Tsingshan LME Nickel Futures Squeeze Case as the core of the study, this paper uses case analysis method to deeply study the possible problems and failures in the futures market under the condition of financial derivatives market instability and puts forward suggestions on how to deal with these problems. This paper analyzes the attributes and characteristics of China’s ‘crude oil treasure’ products and nickel futures products, restores the event process, describes the impact of the event on investors, trading institutions and banks, and puts forward suggestions for improvement. The suggestions in this paper are as follows: First, the company and the regulatory department should strengthen risk supervision and management; Second, companies and investors should improve their professional capabilities.