China Securities Journal: 8^th Batch of Financial Innovation Cases in Shanghai Free Trade Zone were published   SHFE Natural Rubber "Insurance + Futures" Targeted Poverty Alleviation Project Was Listed in It

Updated on: October 13, 2017

Reported by Sun Huiping

8^th Batch of Financial Innovation Cases in Shanghai Free Trade Zone were published

The 8^th batch of financial innovation cases in Shanghai Free Trade Zone, totally 15 were published on October 12, including 3 free trade account function innovations, 6 financial market innovations, 2 institutional innovations, and 4 insurance business innovations, and they involved the promotion of “Belt and Road” monetary circulation, support the national “accurate poverty alleviation” policy, and deepen the promotion of constructing Shanghai International Finance Center and other aspects.

In the financial market innovation cases, there is one case involving futures market, i.e., The Natural Rubber "Insurance + Futures" Targeted Poverty Alleviation Project of SHFE, and for rubber peasants in national-level poverty-stricken counties, the fluctuation risk of natural rubber price is transferred to insurance, futures and other financial markets through futures market and financial derivative instruments, so as to avoid the agricultural product price risk, ensure the economic incomes of rubber peasants, and realize accurate poverty alleviation.

In the Release Conference for the 8^th Batch of Financial Innovation Cases in Shanghai Free Trade Zone held on the current day, Jin Xingming, the Deputy Secretary General of Shanghai Municipal Peoples Government introduced the important achievements obtained within 4 years after Shanghai Free Trade Zone was listed, and meanwhile, expressed that the financial opening and innovation would be further deepened in the Free Trade Zone.

Jin Xingming said that, within 4 years after Shanghai Freen Trade Zone was listed, it has basically formed the financial innovation system framework taking the serving of substantial economy as the main contents, more open financial market system and financial institution system. With respect to the construction of financial market, it has set Shanghai International Energy Transaction Center, China Europe International Exchange AG, Shanghai Insurance Exchange, Shanghai Commercial Paper Exchange Corporation Ltd., China Trust Registration Co., Ltd., and released golden “international board”, security “Shanghai-Hong Kong Stock Connect”, and “Bond Connect”. With respect to the development of financial institutions, a batch of international and functional financial institutions and organizations, such as New Development Bank, Cross-border Interbank Payment System (CIPS), CCP12, China Insurance Investment Co., Ltd., and National Internet Finance Association of China are settled. Private financial institutions and joint venture financial institutions, such as SHRB, Shengang Securities, and Howbuy Securities are set. Besides, Shanghai Free Trade Zone has fully played the function of “bridgehead”, and provided financial support for the construction of “Belt and Road”. 15 commercial banks for 12 countries (regions) along the line of “Belt and Road” came to Shanghai and set institutions. New Development Bank issued the first RMB green financial bond in Shanghai, and the World Bank issued the special drawing rights (SDR) bond of RMB valuation, “Panda Bonds” accumulatively issued over RMB 200 billion, and Dubai Gold was listed in several commodity exchanges with the futures contract of “Shanghai Gold” valuation. Shanghai Stock Exchange, China Financial Futures Exchange, etc. cooperated with Pakistan partners in acquiring 30% equities of Pakistan Stock Exchange.

Jin Xingming expressed that, within 4 years, Shanghai Free Trade Zone has explored and formed a big batch of reproducible, and promotable financial innovation achievements. Shanghai Free Trade Zone has fully played the function of financial opening innovation “test field”, supported and encouraged the vast financial institutions to explore a big batch of typical financial innovation cases that can be referred to, including the 8^th batch of financial innovation cases, and these cases have played an important demonstrated and leading role in promoting the financial innovation development.