CHINA SECURITIES JOURNAL: THE SHFE: CHINA’S ELECTRICITY FUTURES IN IMPLEMENTATION, PROMOTION STAGE

Updated on Apr 11,2014

April 11, 2014

By Guan Ping

On April 9, Shanghai Institute of Futures and Derivatives (SIFD) and the China Electric Power Promotion Council (CEPPC) sign a strategic cooperation framework agreement in Shanghai to establish an all-round strategic partnership, symbolizing that they will jointly research electricity futures and vigorously promote the development of the futures market, in a bid to serve the market-oriented reform and development of China’s electric power industry.

SIFD and the CEPPC are respectively a subsidiary of the Shanghai Futures Exchange (SHFE) and a national industry association under the management of the China Electricity Council (CEC). The signing also marks that the cooperation of the SHFE and the CEC in electricity futures research has entered a stage of implementation and promotion. Market insider says that actively promoting the research on electricity futures and its listing is of great significance to the improvement of China’s energy futures series, the formation of products’ clustering effect, and the increase of professional competitive edge.

According to the agreement, SIFD and the CEPPC will follow relevant rules of the National Development and Reform Commission and the China Securities Regulatory Commission and stick to the principle of “Integrity, Mutual Benefit, Long-term Cooperation, and Common Development”, in a bid to build a strategic partnership characterized by win-win and sustainable development through close bilateral cooperation. They will fulfill their duties and strengthen communication and coordination to jointly contribute to the research on electricity futures and its listing, thus better boosting the development of China’s futures market and the market-oriented reform of China’s electric power industry.

In addition, both sides will jointly research on prospective issues in the capital market related to electricity, such as system construction and regulation, and on innovations in products, derivatives, trading modes, and financial services of electric power, with an aim of promoting the in-depth recognition of their fields, the development of new products and business lines, and the expansion of comprehensive business lines. Moreover, they will actively share their research results and organize relevant seminars.