Futures Daily: SHFE: Prompt the Product Innovation to Boost the Development of Real Economy

Updated on:Dec 04,2017

Updated on December 4, 2017

Reported by: Zhou Xiaoya

On December 3, Shanghai Futures Exchange (“SHFE”) hosted a special event in Shenzhen, the theme of which is to “Prompt the Product Innovation to Boost the Development of Real Economy”. Heads and senior members of relevant business departments of SHFE presented the attendees with the modification on futures contracts of crude oil, pulp and fuel oil as well as the updates on business innovation, and also conducted brilliant interactions and exchanges with the guests from relevant industries at the round-table discussions, which centered around the theme to better serve the national strategy and support the development of real economy through the futures market. More than 200 attendees were present at this special event, including senior executives from famous financial institutions and relevant industrial enterprises both home and abroad, practitioners of futures sector and media representatives.

In the leadership speech, Teng Jiawei, SHFE’s Deputy General Manager, said that futures market is the outcome that the market economy produces at a certain stage of development, offering the most effective means in the financial market system to serve the real economy. Therefore, futures trading has become not only a significant tool for the physical enterprise to conduct the risk management, but also a barometer for relevant government departments to observe the operation of macroeconomy. In accordance with the report of the 19^th National Congress of the Communist Party of China, China’s economy has been witnessing a pivotal stage for transforming the growth model, improving the economic structure, and fostering new drivers of growth. It can be predicted that the risk management demands from the physical enterprises will increasingly rise up in this stage, thus putting forward much higher requirements for the futures market. In view of this, SHFE should earnestly implement the spirit of the 19^th National Congress of the Communist Party of China, strengthen the capability to serve the real economy through futures market and persist in the keynote of progress in stability in a bid to give full play to the advantages of the Exchange, press forward the innovations in terms of products, business, regulation and technology, serve the national strategies and lead the development of the industry.

In particular, firstly, we should stick to the lawful, thorough and stringent regulation and firmly maintain the steady market operation by perfecting the scientific risk early warning system and responding mechanism, upgrading the effectiveness of frontline regulation and promptly identifying and punishing illegal trading activities. Secondly, we should actively yet prudently push forward the opening of the futures market to the outside world and enhance the global competitiveness and influence. We should make effective and down-to-earth efforts to prepare for the listing of crude oil futures, attracting the participation of domestic and overseas investors step by step, and attach great importance to “Going-out” to explore the feasible path to the practical cooperation with the nations along the “Belt & Road”. Thirdly, as for the promotion of products innovation, we should actively prepare for the listing of copper option and pulp futures, accelerate the project initiation of No.20 standard natural rubber and carry out the research on stainless steel and nonferrous metals index according to the actual demands of the industries, and at the same time intensify, refine and optimize the existing products and launch the standard warrants trading platform. Finally, we should strengthen the efforts to conduct the market cultivation and promotion, carry out targeted training in various forms, enhance the field services and extensively attract the industrial clients to manage their own production and operational risks with futures instruments.