Back
In recent years, with the steady expansion of futures market varieties and the continuous increase in categories in China, the ability to serve the real economy has been continuously enhanced. At the same time, the process of opening up to the outside world is also accelerating. Currently, it has the foundation and ability to serve the high-quality development of the economy and global industrial chain enterprises.
The 18th International Oil and Fat Industry Conference and Agricultural and Livestock Industry (Derivatives) Conference was held in Dalian this month. The attending guests expressed that the influence of commodity prices such as oil and oilseeds in China's futures market is constantly increasing, forming an integrated development pattern of "you in me, I in you" with overseas markets. In addition, in industries with a high degree of marketization such as oil and oilseeds in China, using futures prices as pricing references and conducting basis trade has become the mainstream of the industry.
Having the foundation and capability to serve global industrial chain enterprises
In recent years,China's futures market has made many breakthroughs in variety innovation, opening up to the outside world, and has the foundation and ability to serve high-quality economic development and global industrial chain enterprises.
Taking Dalian Commodity Exchange (hereinafter referred to as "Dalian Commodity Exchange") as an example, Ran Hua, secretary of the Party Committee and chairman of the board of directors of Dalian Commodity Exchange, said that after years of steady development, Dalian Commodity Exchange has gradually developed into a globally influential commodity futures trading center. The price influence of oil, oil, iron ore, plastics and other commodities has been increasing, forming an integrated development pattern of "you have me, you have me" with overseas markets.
For example, in terms of variety innovation, Dalian Commodity Exchange closely combines the actual national conditions and industrial needs, focuses on innovating and improving the variety system, and has successively launched the world's first physical delivery iron ore futures, the first domestic commodity options, and the first live delivery pig futures in China, filling the historical gap.
In terms of opening up to the outside world, Da Shang has established a steady development pattern of opening up to the outside world. Starting from the introduction of foreign traders to participate in iron ore futures in 2018, 11 futures and options varieties have been opened to the outside world by Dashang Exchange, and 14 futures and options varieties are open for trading to qualified foreign investors. The participation of overseas customers continues to increase.
It is worth mentioning that in March of this year, the Malaysian Derivatives Exchange listed futures contracts settled based on soybean oil futures prices on the Dalian Commodity Exchange, exploring paths and accumulating experience for further deepening the connection between domestic and foreign markets.
Salim, Managing Director of the Malaysian Derivatives Exchange (BMD), stated that since BMD launched the Malaysian Derivatives Exchange soybean oil futures (F-SOY) on March 18, 2024, all parties in the market have actively participated. As of October this year, the total trading volume reached 65379 lots, with an average daily trading volume of 430 lots.
Salim stated that in the future, BMD will be committed to further developing this contract, expanding market access, and creating more opportunities for all participants. In addition, we will fully leverage our advantages as a global edible oil trading market and open up new avenues for sustainable derivatives trading by implementing product expansion plans, enhancing the flexibility of global market participants.
Promote further integration of the current market
In addition to making efforts in opening up to the outside world, in recent years, the operation of China's futures market and the standardization of enterprise participation have significantly improved. Some industrial chain enterprises have made reasonable use of financial derivatives such as futures and options, and achieved multi-faceted linkage between futures and spot, upstream and downstream industries through hedging and other means. This can effectively help enterprises avoid risks such as tight raw material supply, frequent price fluctuations, and high product inventory, and promote the optimization of production and operation efficiency.
Ran Hua said: "In the highly market-oriented industrial fields such as oil, grease and petrochemical industry, taking futures prices as pricing reference and carrying out basis trade has become the mainstream of the industry. A large number of leading enterprises and traders at home and abroad have made full use of domestic and international markets for hedging, creating many fresh cases of maintaining the stability of the industrial chain supply chain in the context of globalization."
Ran Hua said that in the next step, under the leadership of the China Securities Regulatory Commission, DCE will do a solid job in strengthening supervision, preventing risks and promoting high-quality development, promote the smooth operation of the market, continue to innovate and improve the product supply system, deepen and consolidate industrial services, deepen domestic and overseas market connectivity, focus on improving the influence of commodity prices, accelerate the construction of a world-class futures exchange, better serve the needs of the real economy with professional expertise, and help the futures market and related industries to achieve high-quality development.
Specifically reflected in the following four aspects: firstly, based on industry needs, continuously innovate and improve the product supply system. By combining the advantages and characteristics of the agricultural products, black mineral resources, petrochemical products and other industrial chains of Dashang, we will expand the variety layout, study and enrich the types of contracts, and further meet the more diverse and refined risk management needs of industrial enterprises.
Secondly, provide in-depth and practical industrial services to promote the integration of current and future development. Expand and strengthen the activity brands such as "one-on-one leading", "production and financing base", "enterprise risk management plan", etc., to further enhance the risk management capabilities of industrial enterprises from point to area. Facilitating the participation of industrial enterprises through methods such as cash transfer.
Thirdly, we must adhere to strict supervision and management to promote the smooth operation of the market. Closely track the operation of hot varieties, strengthen comprehensive risk assessment, resolutely prevent overheated transactions, and guide all parties to participate rationally. Strengthen the penetrating supervision of various trading behaviors, closely monitor the evolution of new trading technologies and strategies, strictly investigate and punish all kinds of illegal and irregular behaviors in accordance with the law, and purify the market ecology.
Fourthly, deepen the connectivity between domestic and international markets to better serve global industrial enterprises. By improving the hedging tools in the industrial chain, strengthening the cultivation of leading enterprises, and deepening opening up to the outside world, we will further expand the variety base, increase the influence of futures prices, and better meet the pricing hedging needs of global related industrial enterprises, focusing on advantageous varieties.