China Designs Futures Market for AI Tokens
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: Newsfilter
- Futures Market Design: China is designing a futures market for AI tokens, with the Shanghai Futures Exchange in preliminary stages aimed at providing new financial instruments for pricing AI services, thereby enhancing domestic companies' ability to hedge against computing costs.
- Competitive Market Context: This initiative contrasts with the U.S. CME Group and Intercontinental Exchange's launch of GPU compute futures, highlighting China's strategic intent in the AI sector, which could influence global AI supply chain dynamics.
- Surge in Token Usage: Since the beginning of 2024, China's daily token usage has skyrocketed to over 140 trillion, reflecting a 1,000-fold increase, indicating strong market demand for computing power and driving the development of futures products.
- Potential for New Asset Class: BlackRock's CEO noted that the surging demand for tokens could spawn an entirely new asset class, further enhancing China's financial position in the competitive landscape of AI and semiconductor technology.
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Analyst Views on CME
Wall Street analysts forecast CME stock price to rise
10 Analyst Rating
4 Buy
4 Hold
2 Sell
Hold
Current: 277.420
Low
209.00
Averages
285.90
High
320.00
Current: 277.420
Low
209.00
Averages
285.90
High
320.00
About CME
CME Group Inc. provides a derivatives marketplace. The Company enables clients to trade futures, options, cash and over the counter (OTC) markets, optimize portfolios, and analyze data. It exchanges offer a range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange (FX), energy, agricultural products and metals. It offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and FX trading on the EBS platform. In addition, it operates central counterparty clearing provider, CME Clearing. Its products provide a means for hedging, speculation and asset allocation related to the risks associated with, among other things, interest rate sensitive instruments, and changes in the prices of agricultural, energy and metal commodities. It provides clearing and settlement services for a range of exchange-traded futures and options on futures contracts and OTC derivatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Political Interference Consequences: Trump's influence over the Fed may lead to unnecessary interest rate cuts, potentially resulting in rising inflation; doubts about the Fed's independence could destabilize the bond market, ultimately affecting stock market performance and creating a counterproductive effect to Trump's desired lower rates.
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- Inflationary Pressures Intensify: The Consumer Price Index rose to 3.8% in April, the highest in three years, with forecasts suggesting acceleration to 6.5% in Q2, further impacting consumer spending and corporate earnings growth.
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- Competitive Market Context: This initiative contrasts with the U.S. CME Group and Intercontinental Exchange's launch of GPU compute futures, highlighting China's strategic intent in the AI sector, which could influence global AI supply chain dynamics.
- Surge in Token Usage: Since the beginning of 2024, China's daily token usage has skyrocketed to over 140 trillion, reflecting a 1,000-fold increase, indicating strong market demand for computing power and driving the development of futures products.
- Potential for New Asset Class: BlackRock's CEO noted that the surging demand for tokens could spawn an entirely new asset class, further enhancing China's financial position in the competitive landscape of AI and semiconductor technology.
See More
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- Inflationary Pressures: Oil prices have surged to multi-year highs, causing the Consumer Price Index (CPI) to accelerate to 3.8% in April, with projections suggesting it could rise to 6.7% in the second quarter, exerting persistent inflationary pressure on manufacturing and transportation costs.
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See More
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- Rising Bond Yields: Treasury yields have surged recently, with the 30-year yield hitting a 19-year high as investors expect the Federal Reserve to raise interest rates to combat inflation, indicating growing concerns about potential economic slowdown.
- Increased Stock Market Risks: Historically, the S&P 500 has averaged a 7% decline in the three months following the onset of a new rate-hike cycle since 1999, suggesting that current rate hike expectations could negatively impact stock market performance by limiting corporate investment and expansion plans.
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See More
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See More
