Futures Daily: SHFE President Song Anping: Improve Serviceability of Gold Futures Market

Updated on: July 28, 2017

Reported by: Huang Yan, Journalist from Futures Daily

Shanghai Futures Exchange (SHFE) President Song Anping says at “China Gold Congress and Expo 2016” that China’s gold industry is in the key period of transformation and upgrading during which SHFE will continue its efforts in reform, innovation, opening and self-disciplinary supervision, trying to attract relevant enterprises and various institutional investors to participate in the risk management of the futures market and constantly improve serviceability for the gold futures market.
In his opening speech, Song reveals a multi-level gold market system is of great significance to improve China’s financial market system, safeguard its financial and economic security and increase wealth management tools. Developing from ground, China’s gold market has gone through the process of “gradual opening up-marketization-internationalization”, realized the restruction of the market from a single spot structure to the one with coordinated development of spot, futures and over-the-counter markets, and has gradually established itself as an important component of China’s multi-level financial market system. In recent years, China’s gold market system sees continuous improvement in product variety, trading mechanism, infrastructure, market function and investor, plays different roles and satisfies diversified needs, which ascends itself to one of the world most important gold markets with ever growing international influence.
Song says that gold futures market of SHFE has been developing in a stable and orderly manner at the concerns and under the supports of all market stakeholders. In terms of institutional innovation, SHFE will continue to optimize the trading mechanism, constantly improve market operation efficiency and service level and actively study out pathway and scheme for internationalization of gold futures to expedite its internationalization process. In terms of providing legal rights protection for investors, SHFE will closely follow the requirements for regulatory transformation, maintain a “fair and open” market and crack down various violations to constantly improve its regulatory effectiveness. In terms of legal construction, SHFE will actively work with MOF in the study and revision of the hedging financial system and to advance the cancellation of relevant policies. In terms of technological innovation, SHFE will comprehensively implement the ISO 9001 and ISO 2000 technical management systems to complete the construction of a newer generation exchange (NEG 2.0). Faced with the situation of increasing demand for lean management of the gold industry, SHFE will continue its efforts in reform, innovation, opening and self-disciplinary supervision, to attract relevant enterprises and various institutional investors to participate in the risk management of the futures market, constantly improve serviceability for the gold futures market, and to facilitate the gold industry to seize opportunity and realize transformation and upgrading.
It’s learned that SHFE saw a total of 50,634,400 transactions closed, equivalent to 50,600 tons, ranking the world second for 3 years in a row. SHFE has been actively attracting banking institutions and non-banking institutions like securities companies, fund companies and futures companies to participate in the commodity futures market. Its constantly optimized gold futures investor structure enables 17 commercial bank members and over 9,000 special institutional customers (including futures company asset management, collection asset management and fund management account) to participate in gold futures transaction. Stable development of the gold futures market has optimized the formation mechanism of gold price, promoted standardized development of the gold industry and facilitated its restruction.
　　The China Gold Congress and Expo 2016 is co-hosted by China Gold Association and World Gold Council. SHFE is the strategic partner of the Congress and will host today’s “Forum for Gold Derivatives Market Development”.