SHANGHAI SECURITIES NEWS: SHANGHAI FUTURES EXCHANGE HELD THE TRAINING AND INVESTIGATION FOR BONDED ZONE BUSINESS EVENT

Updated on Jul 05,2013

By Huang Ying, Journalist of Shanghai Securities News

On July 4, Shanghai Futures Exchange held the 3^rd event entitled “Going Together with Institutional Investors”—Training and Investigation for Bonded Zone Business, which featured business elites from about 40 futures companies and their goods-in-stock subsidiaries, who visited Yangshan Bonded Port for field research.

In this event, Shanghai Comprehensive Free Trade Zone Administrative Committee, Baiyin Resources Ltd, Shanghai Branch of Bank of China and other entities were invited to give a lecture and training on related business of bonded areas. Risk management subsidiary business of futures companies is an important innovation in China’s futures market, which gives an important impetus to diversify the business scope of futures companies and help the futures industry to better serve the real economy. Risk management subsidiary business is still a new thing to the futures industry. There are a lot of questions confronted by futures companies in terms of business development direction, operational mode, organizational structuring, product development and other aspects. The event enlightens companies to carry out related operations in the future.

It is reported that the series of training events are an important part of Shanghai Futures Exchange for the exchange and cooperation with institutional investors in 2013. The previous two events were respectively themed with “Fund Companies Engaged in Commodity Futures” and “Capital Management Business of Futures Companies”, which aroused the fervent response from the market. Shanghai Futures Exchange will continuously increase the breadth and depth of support for institutional investors, launching institutional investor cultivation events on a regular basis and achieving branding of such events through a variety of ways such as thematic seminars for the market, business training and comprehensive services.

Since Shanghai Futures Exchange launched a pilot for bonded settlement business on December 24, 2010, various functions have been gradually exercised. The number of bonded warehouse receipts and the settlement amount continue to grow, pledge business of bonded warehouse receipts outside Shanghai Futures Exchange make a great breakthrough, derivative functions of bonded warehouse receipts continuously go into full play, and non-ferrous metal bonded agglomeration effect is continuously demonstrated, which has played an important role in blazing the opening-up path of China’s futures market. Next, based on the current bonded settlement of CU and AL in Yangshan Bonded Port, Shanghai Futures Exchange will explore for expanding geographical scope and variety of commodities for futures bonded settlement, and shift from pilot to a comprehensive promotion for the futures bonded settlement business.