Price linkage between Chinese and international nonferrous metals commodity markets based on VAR-DCC-GARCH models

Using VAR-DCC-GARCH model,the literature on commodity price was extended by exploring the co-movement between Chinese nonferrous metal prices and global nonferrous metal prices represented by the nonferrous metal prices from London Metal Exchange(LME).The results show that LME nonferrous metals prices still have a greater impact on Chinese nonferrous metals prices.However,the impact of Chinese nonferrous metals prices on LME nonferrous metals prices is still weak except for lead price.The co-movement of nonferrous metal prices between LME and China presents hysteretic nature,and it lasts for 7-8trading days.Furthermore,the co-movement between LME nonferrous metals prices and Chinese nonferrous metals prices has the characteristics of time-varying,and the correlation of lead prices between LME and China is the more stable than all other nonferrous metals prices.

Dynamics of price cooperating model in commodity market

For the problem of price fluctuation in the commodity market, some ordinary differential equation models are proposed and the stability of equilibrium price is studied. In this paper, we develop a mathematic model for price cooperation with diffusion and lag. When the economic parameters satisfy some conditions, the existence and stability of periodic price are investigated.

Pressure of Competition to Listed Companies in Commodity Market and Selection of Financial Leverage

As revealed by some competition of commodities supplied foreign experts, the financial leverage has an impact on the market by different listed companies, and low financial leverage implies a competitive edge but high financial leverage is liable to fail in business operation. Viewing from such an angle, the low financial leverage is in fact a conservative financial behavior, which means a reasonable selection. Generally, Chinese listed companies prefer financing from offering equity shares, which is regarded as a reasonable selection weighing both gains and risks. However, based on an analysis of the pressure of market competition to the listed companies of various industries and how they select their own fit/ancial leverage, it is found that there is an extremely unmatched phenomenon in China＇s capital market, i.e., the keener the commodity market competition is, the higher the financial leverage of listed companies will be. Therefore, the over-financing from offering equity shares is coexisting with under-financing from offering equity shares in China＇s capital market at present, and both lead listed companies to low efficiency.

Representation of Infinite-Dimensional Forward Price Models in Commodity Markets

We study the forward price dynamics in commodity markets realised as a process with values in a Hilbert space of absolutely continuous functions defined by Filipovi´c(Consistency problems for Heath–Jarrow–Morton interest rate models,2001).The forward dynamics are defined as the mild solution of a certain stochastic partial differential equation driven by an infinite-dimensional Lévy process.It is shown that the associated spot price dynamics can be expressed as a sum of Ornstein–Uhlenbeck processes,or more generally,as a sum of certain stationary processes.These results link the possibly infinite-dimensional forward dynamics to classical commodity spot models.We continue with a detailed analysis of multiplication and integral operators on the Hilbert spaces and show that Hilbert–Schmidt operators are essentially integral operators.The covariance operator of the Lévy process driving the forward dynamics and the diffusion term can both be specified in terms of such operators,and we analyse in several examples the consequences on model dynamics and their probabilistic properties.Also,we represent the forward price for contracts delivering over a period in terms of an integral operator,a case being relevant for power and gas markets.In several examples,we reduce our general model to existing commodity spot and forward dynamics.

Systemic Risk in Chinese Commodity Futures Markets: A Graph Theory Analysis

This paper sets out to explore the contagion of systemic risk in Chinese commodity futures market based on specific tools of the graph-theory.More precisely,we use minimum spanning trees as a way to identify the most probable path for the transmission of prices shocks.In the sample of 30 kinds of Chinese commodity futures,we construct the MST and obtain the most probable and the shortest path for the transmission of a prices shock.We find that metal futures play an important role in commodity futures market and copper stands at the heart of the system(The core position of the system is very important for the transmission of system risk).And our results also reveal that when the risk occurs,the MST structure becomes smaller,leading to the most effective transmission path of risk becomes shorter.

Analysis on the Problems and Countermeasures of Enterprise Relationship Marketing

Under the current economic situation,companies should fully realize the importance of relationship marketing,establish good and stable relationships with all related parties,strengthen exchanges and cooperation with each other,achieve win-win benefits,and promote corporate marketing activities.For the success of the company,we will conduct in-depth investigations in the economic market,improve the products in time,and make plans based on the current development situation.

Hot Money Flows, Cycles in Primary Commodity Prices, and Financial Control in Developing Countries

Because the U.S. Federal Reserve＇s monetary policy is at the center of the world dollar standard, it has a first-order impact on global financial stability. However, except during international crises, the Fed focuses on domestic American economic indicators and generally ignores collateral damage from its monetary policies on the rest of the world. Currently, ultra-low interest rates on short-term dollar assets ignite waves of hot money into Emerging Markets （EM） with convertible currencies. When each EM central bank intervenes to prevent its individual currency from appreciating, collectively they lose monetary control, inflate, and cause an upsurge in primary commodity prices internationally. These bubbles burst when some accident at the center, such as a banking crisis, causes a return of the hot money to the United States （and to other industrial countries） as commercial banks stop lending to foreign exchange speculators. World prices of primary products then collapse. African countries with exchange controls and less convertible currencies are not so attractive to currency speculators. Thus, they are less vulnerable than EM to the ebb and flow of hot money. However, Afi-ican countries are more vulnerable to cycles in primary commodity prices because food is a greater proportion of their consumption, and--being less industrialized--they are of their commodity exports. Supply-side more vulnerable to fluctuations in prices shocks, such as a crop failure anywhere in the world, can affect the price of an individual commodity. But joint fluctuations in the prices of all primary products--minerals, energy, cereals, and so on--reflect monetary conditions in the world economy as determined by the ebb and flow of hot money from the United States, and increasingly from other industrial countries with near-zero interest rates.