China's first live-delivery futures variety, live pigs, began trading on Friday at the Dalian Commodity Exchange (DCE).

Pig farming businesses can now use futures prices to improve their production plans and hedge spot risks. It would further promote China's pig industry development and achieve stable prices and ample pig supplies.

As an agricultural and sideline product with the highest value in the country, live pigs create a market scale of about 2 trillion yuan (about 309 billion U.S. dollars) with a complete industry chain. However, China's hog prices have been fluctuating sharply over the years, bringing uncertainties to farmers and enterprises.

The listing of live pig futures will further fill the gap of livestock futures in China. Together with other varieties, including corn and soybean, it would create a commodity-price risk management system. It is conducive to promoting the healthy development of the livestock breeding industry, according to Fang Xinghai, vice chairman of China Securities Regulatory Commission.