On the afternoon of 2 March 2012, Shanghai Futures Exchange (SHFE) and Hong Kong Exchanges and Clearing Limited (HKEX) have signed a Memorandum of Understanding (MOU) on cooperation and the exchange of information.

Yang Maijun, President and CEO of SHFE, said on the signing ceremony, that the renewal of the Memorandum of Understanding will help further strengthen our strategic cooperation and experience sharing and will provide more business opportunities for both sides. SHFE hope to have more cooperation with HKEX in business areas of mutual interest and to give the derivatives market a more important role in China’s economic development.

According to the Chief Executive of HKEX Charles Li, The agreement we signed with SHFE is an on-going part of our strategy and follows on from recent similar agreements with other commodities exchanges in China. We recognise the increasing importance of China within global commodity markets and believe that as the leading offshore RMB centre we have a key role to play in supporting this change.

Introduction to SHFE and HKEX

The Shanghai Futures Exchange (SHFE) is organized under relevant rules and regulations. A self-regulated entity, it performs functions that are specified by those statutes. It is regulated by the China Securities Regulatory Commission (CSRC). SHFE operates nine markets in which futures contracts of gold, copper, aluminum, Zinc, fuel oil, natural rubber, rebar, wire-rod and lead are listed for trading. In 2011, the accumulated trading volume in SHFE amounted to 616 million lots with the accumulated turnover of 8.691 billion. Please refer to the website of SHFE tsite.shfe.com.cn for further information.

HKEX is the holding company of Stock Exchange of Hong Kong Limited, Hong Kong Futures Exchange Ltd and Hong Kong Securities Clearing Company Ltd. HKEX was listed on June 2000 following the completion of the consolidation of the securities and futures markets in Hong Kong. As a market-oriented institution responsible for the shareholders, HKEX is devoted to grasping the business opportunities from various places in Asia even in the world. HKEX is the operating and frontline regulatory institution of Hong Kong securities and derivatives market, and its responsibilities include supervising the listed issuers, performing the listing, exchange and settlement rules, as well as providing services for customers of HKEX at an institutional level.