Article 5 of the Notice of State Taxation Administration of The People's Republic of China on Printing and Distributing the Administrative Measures for Pre-tax Deduction of Enterprise Asset Losses (Guo Shui Fa [2009] No.88) stipulates that the actual asset losses of enterprises can be divided into self-calculated asset losses and asset losses that can be deducted only after being approved by the tax authorities. The following asset losses are calculated and deducted by the enterprise itself: 1. Loss of assets caused by the sale, transfer and sale of fixed assets, productive biological assets and inventories in the normal operation and management activities of enterprises. 2. The normal wear and tear of various inventories of enterprises. 3. The fixed assets of enterprises that have reached or exceeded the service life are normally scrapped and the losses are cleared. 4 asset losses caused by the normal death of productive biological assets of enterprises that have reached or exceeded their service life. 5. Losses incurred by enterprises in buying and selling bonds, stocks, funds and financial derivatives in accordance with the relevant provisions of stock exchanges and interbank markets. 6. Loss of other assets confirmed by State Taxation Administration of The People's Republic of China without the approval of the tax authorities. Asset losses other than those mentioned above are asset losses that can only be deducted after approval by the tax authorities. If it is impossible to accurately determine whether the asset loss incurred by an enterprise belongs to the asset loss calculated and deducted by itself, it may apply to the tax authorities for examination and approval. Futures trading is a financial derivative product. If the actual loss meets the above requirements, it can be deducted by itself.