FUTURES DAILY: THE SHFE, CPA TO DEVELOP PULP FUTURES
Updated on Apr 16,2014
April 16, 2014
By Li Lei
The China Paper Association (CPA) and the Shanghai Futures Exchange (SHFE) signed a framework agreement on strategic cooperation in Shanghai a few days ago. The agreement stipulates that both sides will carry out multifaceted cooperation on the research and development of pulp futures and paper derivatives and establish an all-round strategic partnership, in a bid to serve the market-oriented reform and upgrading of China’s pulp industry. The signing symbolizes the steady cooperation between the SHFE and the CPA in researching pulp futures.
Paper-making industry is one of the fundamental raw material industries for the national economy, and both China’s paper production and consumption rank the first in the world. As pulp is an important raw material of paper-making industry, China has become the largest net pulp importer. Therefore, in order to facilitate the stable development of the pulp market in the long run, launching pulp futures at the right time and bringing off price-finding and hedging functions of the futures market will be of great practical significance for filling in the gap of no pulp futures product in China’s futures market and providing relevant industrial enterprises with a hedging instrument.
According to the agreement, both sides will follow the principle of “Integrity, Mutual Benefit, Long-term Cooperation, and Common Development” and cooperate with each other in product innovation, subject research, market training, and industrial service, with an aim of realizing resources sharing and common development and enhancing the futures market’s positive role in serving the real economy related to pulp and paper-making.
Among those attending the signing ceremony were Zhao Wei, Vice President and Secretary General of the CPA, Huo Ruirong, Vice President of the SHFE and Executive President of Shanghai Institute of Futures and Derivatives, and relevant personnel.