On July 12, 2022, Shanghai Futures Exchange (“SHFE”) and its subsidiary Shanghai International Energy Exchange (“INE”) signed a Memorandum of Understanding (“MoU”) with Bursa Malaysia Derivatives Berhad (“Bursa Malaysia Derivatives”) in a joint effort to strengthen bilateral business partnership. The exchanges mentioned in the MoU that they would share information and best practices in marketing, product research, personnel exchange and areas of mutual interest.

Mr. Wang Fenghai, Chief Executive Officer of SHFE and INE, mentioned, in recent years, SHFE and INE are committed to the opening up of China’s futures market. Currently, INE has attracted overseas investors from over 20 countries and regions in six continents including Asia, Europe, North America, South America, Africa and Oceania, and has the largest number of international products among all China's commodity futures exchanges. Southeast Asia is one of the major sources of our overseas investors and is the major source of registered commodities and manufacturers for INE’s TSR 20 futures, accounting for 84% of all registered commodity manufacturers for this product.

Wang also added, China and Malaysia are natural trade partners in commodities. The two countries also have a long history of cooperation in the financial sector. The signing of this MOU between SHFE, INE and Bursa Malaysia Derivatives is the crystallization of the deep friendship between the three exchanges over the years. We look forward to working together with Bursa Malaysia Derivatives to deepen our understanding of each other's markets, to learn from each other, and to provide investors with more risk management tools.

“The signing of this MOU is a positive development that will lay the groundwork for a long-term relationship between Bursa Malaysia Derivatives, SHFE and INE, and will further drive the growth of the ASEAN derivatives markets,” said Samuel Ho, Chief Executive Officer of Bursa Malaysia Derivatives. “Beyond our operations, this collaboration will indirectly support and contribute towards the China-Malaysia economic trade, given China’s position as Malaysia’s largest trading partner and rubber importer.

“We look forward to working with SHFE and INE on the development of new products that will not only complement existing offerings, but will also meet the needs of increasingly sophisticated customers,” concluded Samuel.