Futures Daily：SHFE Continues Facilitating Both Serialization and Diversification of its Products

 Date: April 24, 2017

Contributed by Jue Haiyan, reporter from Futures daily

On April 23, the 11th China Futures Analyst and OTC Derivatives Forum was held in Hangzhou. In a sub-forum co-hosted by Zheshang Futures and Huishang Futures, SHFE vice president Ye Chunhe said that since its inception more than a decade ago, China Futures Anaylist Forum,with its influence conintuing to rise, has already become an important force that is pushing forward the exchange exchange and communication, and the growth of analyst team as well.  
　

He said that SHFE has always been aiming at serving the real economy, with seeking progress in stability, development and opening-up as its keynote under the new situtaion, so as to continously promote the structural reform on supply side, perfect the role of futures market in providing guidiance on resources allocation, and make efforts to provide a price discovery and risk management platform for industrial clients, instituional investors and participants in other markets, which manifested itself in the following aspects:

     
First, the market scale is on a steady uptrend. In 2016, voume of each product traded on SHFE hit 3.36 billion lots, with a turnover of 169.9 trillion yuan, and 41% and 43% market share in futures markets across the country respectively. In 1st quarter of 2017, SHFE continued maintain a leading position in its market share. Along with the growth of trading scale, total futures delivery in 2016 reached around 270 million tons, approaching 700,000 lots based on one-sided statistics, with a delivery amount of 57.4 billion yuan. With the continous enrichment of delivery resources, the number of registered brands rosed to 280, certified delviery warehouses to 82 and repositories to 147.             

Second, the market is given a full play to its role. In 2016, the correlation coefficient between price of copper, zinc, tin, nickel and gold futures on SHFE and that on spot market or similar overseas market exceeded 99%, which is relatively enough to fully reflect the changing trend of supply-demand relation both internally and externally. After many years of market forstering, more and more physical enterprises have participated in the futures market. In 2016, corporate clients participating in futures trading on SHFE rosed 32% year on year, with the open positions held by corporate clients staying at relatively higher level of more than 55%. A good investor mix has provided assurance for the liquidity and effective functioning of futues market.        

Third, the building of platform continues to improve. SHFE will continue its efforts in pressing ahead with the serialization and diversification of products, so as to do well in the already-listed products by going deep, striving for execllence and being meticulous. On the premise of strictly keeping the bottom line of regulatory risk, the efforts will also be made to expand development space for building of platform for trading, technologies, OTC market and so on. Meanwhile, The exchange will take the listing of strategic products as an opportunity to  accelerate its integration into global markets.    
　　

At present, the complex and changing international economic and financial situation intertwined with frequent oscillation in commodity markets. Against the backdrop of economic new normal, the greater challenge ahead of futures markets and furtures industry is about how to match the increasing risk management demands from enterprises and major market players and provide them with specialized service, and how to practically promote the structural reform on supply-side as as to improve the capability of capital market to serve real economy and social development. SHFE will continue to focus on helping physcial enterprises do well in managing their market and price risks, so it is possible for them to achive higher and more ambitious goal in the course of economic structure transition.