Zhengzhou Commodity Exchange: Continue to promote high-level institutional opening of the market

At the 2021 China (Zhengzhou) International Futures Forum Opening-up Forum held on the afternoon of September 1, Wang Yamei, deputy general manager of Zhengzhou Commodity Exchange, said in his speech that in the future, Zhengzhou Commodity Exchange will continue to uphold the principles of openness, cooperation, Based on the international concept of unity and win-win, we will strengthen the construction of regulatory capacity under opening conditions and continue to promote the high-level institutional opening of the futures market.

Wang Yamei said that based on the new stage and looking forward to new trends, China’s futures market will play an active role in serving the construction of a new development pattern with the domestic cycle as the main body and the domestic and international dual cycles reinforcing each other.

First of all, the price discovery and risk management functions of the futures market provide effective operating references and hedging tools for industrial enterprises. Physical delivery of futures can serve corporate purchases and sales, and futures warehouse receipt financing can alleviate corporate financing problems. Generally speaking, the orderly operation of the futures market is conducive to reducing the costs of production, circulation, consumption and other links, helping to form a higher level of dynamic balance in which “demand drives supply and supply creates demand”, and improves the overall efficiency of the national economic system. .

Secondly, the futures market plays the role of a “stabilizer”. The more uncertain and unstable factors we face, the more prominent this advantage becomes. Since the outbreak, global production, consumption, trade and other fields have been affected to varying degrees. Zhengzhou Commodity Exchange has taken active measures to reduce corporate transaction costs, ease corporate capital and supply chain pressures, and support corporate participation in futures market management risks. The role of the futures market in serving real companies and the real economy has been further highlighted.

Finally, as China’s high-quality economic development and opening-up continue to deepen, more and more overseas companies are expanding their markets in China. At the same time, as China continues to promote the construction of a new higher-level open economic system and the international competitiveness of enterprises continues to increase, more and more Chinese enterprises are taking the step of “going out” pace. Domestic and foreign enterprises have an increasingly strong need to manage risks, which requires the futures market to play a functional role in a wider area and at a deeper level.

Wang Yamei said that based on the above understanding, ZCE attaches great importance to international development, always integrates into the global market with an open attitude, actively connects with international standards, and continuously expands domestic and overseas cooperation. ZCE has successively joined international industry organizations such as the World Federation of Exchanges and the International Futures Industry Association, obtained the Hong Kong Automated Trading Service Provider License, obtained the Singapore Recognized Market Operator License, and became the first domestic company to be approved by the European Securities and Markets Authority. Futures exchanges included in both positive lists.

A reporter from Futures Daily learned that in terms of introducing overseas traders, Zhengzhou Commodity Exchange’s PTA futures is operating well, with overseas participation steadily increasing and price radiation continuing to increase. Currently, ZCE has nearly 400 overseas traders from 19 countries and regions including the United Kingdom, Australia, New Zealand, Italy, Singapore, and Hong Kong. Overseas trading volume accounts for more than 10%. More than 90% of domestic PTA production companies and trading companies and more than 80% of polyester companies are participating in the futures market. After nearly 15 years of development and cultivation and nearly three years of opening up to the outside world, PTA futures has not only become the pricing benchmark for domestic spot trade, but has also gradually changed the traditional pricing method of international trade of upstream and downstream products, becoming an important pricing reference for international trade.

In terms of technological innovation, Zhengzhou Commodity Exchange continues to optimize the construction of the Yisheng global routing platform. Yisheng Company, a wholly-owned subsidiary of Zhengzhou Commodity Exchange, provides technical services to more than 80% of Chinese-funded futures companies in Hong Kong by providing global market trading system software and building a global routing network; with Shanghai, Hong Kong and Zhengzhou as the centers, With branches in Singapore and Chicago, we build a global routing network to connect large overseas brokers, carry direct market data from global mainstream exchanges, and provide investors with cross-border trading services.

Wang Yamei said that based on the new development stage, implementing new development concepts, serving to build a new development pattern, and orderly advancing the international development process, it is the inevitable choice for the Futures Exchange to follow the development trend of the times and achieve high-quality development. In the future, ZCE will continue to uphold the international concepts of openness, cooperation, unity and win-win, strengthen the construction of regulatory capabilities under opening conditions, and continue to promote the high-level institutional opening of the futures market. Further study to expand the scope of specific varieties; carry out the construction of the overseas special participant system; steadily promote the two-way opening of markets and products; make preparations to support QFII participation in the commodity futures market; continue to promote the construction of the Yisheng global routing platform; deepen cooperation with overseas exchanges Pragmatic cooperation through investment education promotion, mutual visits and exchanges, cooperative research, etc., to keep in close contact and build consensus.

AAA

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