Jiaxin Group Knowledge Series: Partners with Chuangyuan Futures to Spotlight Benzene Risk Management, Strengthening the Foundation of Risk Control
TIME：
2025-11-22
On November 21, Jiangsu Jiaxin Group successfully held its second internal knowledge-sharing session, focusing on benzene hedging, option contract rules, and corporate risk management through benzene futures and options.
The event was honored to feature a professional team from Chuangyuan Futures as the keynote speakers, with the DaLian Commodity Exchange serving as the supporting organization. Employees from core departments, including Business and Finance, participated in the session, embarking on an enriching journey of professional knowledge enhancement. The training aimed to strengthen the Group's resilience against market volatility and elevate strategic decision-making capabilities within its chemical business.
I. Building a Collaborative Risk Management Framework with Authoritative Institutions
The successful execution of this session marks another solid step in Jiaxin Group's commitment to building a specialized and systematic talent development system.
Chuangyuan Futures, established in 1995, is a professional financial institution with strong state-owned enterprise backing and an exemplary “A-class” rating. Their experts brought cutting-edge market insights and extensive practical experience to the session.
Meanwhile, the DaLian Commodity Exchange, one of China’s five key futures exchanges approved by the State Council and regulated by the China Securities Regulatory Commission (CSRC), lent authoritative and timely perspectives to the training content.
This collaborative learning model—bringing together industrial entities, professional institutions, and exchanges—provided Jiaxin employees with a valuable platform to better understand macro-market trends and micro-level changes. It also reflected senior management’s strong emphasis on risk control and talent cultivation.
II. Core Focus: Mastering Benzene Futures and Options as Key Hedging Tools
Against the backdrop of increasing volatility in global energy and chemical markets, benzene, as a key raw material, directly impacts the Group’s cost control and operational performance.
At the beginning of the session, Chuangyuan Futures experts systematically outlined the basic principles, market mechanisms, and contract rules of benzene futures and options. They placed special emphasis on the concept of hedging as a core risk management instrument.
The experts clarified that the essence of hedging is not speculation, but rather the application of four key principles—opposite trading direction, same commodity type, equal volume, and same or nearby delivery month—to establish positions in the futures market that offset physical market risks. Through this approach, gains or losses in futures help balance adverse price movements in the physical market, thereby “locking in” a relatively stable operating profit margin.
Later, the experts further illustrated the application scenarios of two fundamental hedging strategies—long hedging and short hedging—tailored to the benzene industrial chain.
III. Empowering Operations: Applying Option Strategies in Refined Risk Management
A highlight of this session was the in-depth introduction to options and their role in refined corporate risk management, building upon the foundational knowledge of futures hedging.
Experts highlighted that unlike the linear profit-and-loss profile of futures, options grant the holder a “right,” and the premium-based structure offers companies more flexible strategic alternatives.
Three core option operation strategies were introduced in detail:
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Selling put options for inventory preparation
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Selling call options for sales enhancement
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Buying put/call options for trend-based hedging
The experts concluded that whether using futures or options, the core of effective hedging lies in accurately judging price trends, assessing probable market behavior, and integrating multiple factors to make informed decisions. Enterprises must continuously optimize their hedging strategies in response to market dynamics to build a comprehensive and multi-layered risk management system.
The Jiaxin Group expressed its sincere gratitude to Chuangyuan Futures for their insightful sharing and to the Dalian Commodity Exchange for their steadfast support.
In a rapidly changing market environment, proactive learning, embracing advanced tools, and respecting risk are essential to sustainable growth. It is hoped that all colleagues can internalize and apply the knowledge gained in this session, working together to make risk management capability a new core competitive advantage for Jiaxin Group.
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