99qh.com: SHFE Held Nonferrous Metals Enterprises Risk Management Training Activity in Hunan Province

Updated on: November 18, 2015

Under the background of the economic transformation and development in China,  when in the needs of entity enterprises to strengthen the risk management, organized by SHFE, co-organized by Hunan Branch of CSRC, Hunan Futures Association, Hunan Nonferrous Administration, the Nonferrous Metals Enterprises Risk Management Training Activity was held in Chenzhou of Hunan Province on October 27.

Zhu Zhilong, Deputy Inspector of CSRC Hunan Branch, delivered a speech for the activity. More than 100 participants from over 60 spot companies and futures companies participated in the activity. Derivatives Department of SHFE introduced the relationship between commodity index futures, macro economy and trends of non-ferrous metals, explained in details the design idea of non-ferrous metals index futures contracts, and its role of risk management of enterprises. The Derivatives Division of Guotai Junan Futures introduced commodity derivatives such as swaps, options and commodity index futures, and the use of derivatives to hedge the risks of spot enterprises with examples. Dayou Futures introduced the related new businesses that the risk management subsidiary of futures companies engaged in through cases, including basis trading, warehouse receipt service, cooperative hedge, pricing services, and other specific operation methods.
Give full play to the role exchange platform to serve the real economy is always one of the focus market services of SHFE, under the current economic environment of the New Normal, traditional sectors face pressures such as structure adjustment, industrial upgrading, environmental protection standard, etc, so they need to be better respond to price fluctuations and other operational risks. However, most enterprises' understanding of derivative instruments is still in the primary stage, which puts forward new requirements for SHFE by strengthening relevant market services.

SHFE will continue to strengthen cooperation with local CRSC branches, industry associations and various institutions, so as to build a good communication and service platform for the business matchmaking of futures markets and entity enterprises.