Experts Want Futures To Play A Bigger Role in the real economy
China’s futures market needs to improve services to companies and open up more to international investors to better serve the real economy, experts said at a forum on Wednesday.
During the two-day online 2021 China (Zhengzhou) International Futures Forum, which started on Wednesday. Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said in his keynote speech that China’s futures market should evolve into an international pricing and risk. A management platform that can serve the domestic market and connect to the international market. Fang said it should also help streamline the country’s green development strategy by launching carbon emissions futures.
More products should released and more new commodity futures and financial products should introduce. He said that while the combination between insurance and needs to optimized. Private agricultural futures can launched to help rural revitalization.
Fang added that the futures market should better serve small and medium-sized businesses as well as sub-sectors in the industrial chain. He said that more large industrial companies should participate in the market. So that the operation quality of the market and the efficiency of companies’ risk management can be increased.
Continuous efforts should made to further open up the market. Bond settlement and cash settlement should adopted so that international investors can participate better. In order for the Chinese commodity market to be more effective internationally in terms of pricing. Breakthroughs should made in soybean and palm oil in the Asian market.
In a list released in late July by the Futures Industry Association.
The Zhengzhou Commodity Exchange ranked seventh globally in terms of total trading volume and derivatives.
Xiong Jun, chairman of the Zhengzhou Commodity Exchange, said the long-term goal of the exchange is to better serve the real economy by providing companies with more products and improving services.
On the one hand, the exchange will offer tailor-made services for State-owned enterprises, public companies and SMEs. On the other hand, he said that qualified foreign institutional investors and renminbi qualified foreign institutional investors will continue to be opened. Supporting their participation in futures transactions in the stock market.
After three decades of development, China’s futures market has seen the launch of 94 and options products covering major economic sectors. Such as agriculture, non-ferrous metals, steel, energy, chemicals and finance. A total of nine products, such as yuan-denominated crude oil. Became available to overseas investors, making the Chinese futures market more influential globally.