China News, Dalian, July 6th (Reporter Yang Yi) Options for polypropylene, linear low-density polyethylene and polyvinyl chloride were opened at the Dalian Commodity Exchange on the 6th. Fang Xinghai, vice chairman of the China Securities Regulatory Commission, pointed out in his speech that China's commodity option market has maintained stable operation, rapid growth of transaction scale, and continuous improvement of customer transaction structure. The commodity option market has begun to enter a stable and rapid development track.
Fang Xinghai said that at the time when China's epidemic prevention and control and resumption of production had achieved major stage results and the economic situation was gradually improving, the Dalian Commodity Exchange simultaneously listed polypropylene, polyvinyl chloride and linear low density polyethylene options. The listing of individual chemical product options will certainly have a positive effect on establishing and improving China's petrochemical derivative product system, enhancing the risk management capabilities of petrochemical enterprises, and supporting the healthy and stable development of the petrochemical industry.
Since China launched its first commodity option, soybean meal option, in March 2017, it has listed 16 commodity options in three years, involving agricultural products, metals, energy, chemicals and other commodity sectors.
Fang Xinghai pointed out that China's commodity option market maintained stable operation, the scale of transactions grew rapidly, and the structure of customer transactions continued to improve. According to statistics, from January to May this year, the cumulative volume of Chinese commodity options was 29.47 million, an increase of 160% year-on-year, and the average daily turnover was 344 million yuan (RMB, the same below), an increase of 158% year-on-year. This shows that China's commodity option market has begun to enter a stable and rapid development track.
Since the beginning of this year, due to various factors such as the new crown epidemic, the global industrial chain and supply chain have been blocked, and the commodity market has fluctuated violently. In this context, China's derivatives industry opened the market in time after the Spring Festival, reduced transaction costs, targeted support to the development of enterprises in epidemic areas, timely recovery of night trading, and orderly increase the supply of on- and off-site products. According to statistics, in the first five months of this year, China's futures market was active, with a futures turnover of 2.03 billion lots and a turnover of 134.56 trillion yuan, up 46% and 29% year-on-year respectively.
Fang Xinghai said that the experience since this year once again proved that the futures derivatives market is an indispensable and important part of China's socialist market economic system. He also pointed out that at present, China's economic society is accelerating its recovery and development, and it is still facing greater pressure from the economic downturn. The China Securities Regulatory Commission will accelerate the pace of reform and innovation, continue to improve the quality of market operations, and unswervingly promote opening up. (Finish)