China News Network Dalian March 30 (Reporter Yang Yi) China's first gas energy derivative LPG futures and options were officially listed on the Dalian Commodity Exchange on March 30 This is the first simultaneous listing of futures and options in the domestic market.
The picture shows Tan Zuojun (left), secretary of the Dalian Municipal Party Committee, and Li Zhengqiang (right), chairman of the Dalian Commodity Exchange. Photo courtesy of Dashang
Liquefied petroleum gas is an important clean energy and chemical raw material. According to statistics, China's consumption of LPG will reach 47 million tons in 2019, and its import volume will exceed 19 million tons. It has become the world's largest consumer and importer of LPG. Carrying out related futures and options trading will provide industrial enterprises with open, continuous and transparent price signals and effective risk management tools.
At the listing ceremony, Tan Zuojun, the secretary of the Dalian Municipal Party Committee, and Li Zhengqiang, the chairman of the Dashang Institute, jointly opened the market for LPG futures and options.
In his speech, Fang Xinghai, vice chairman of the China Securities Regulatory Commission, pointed out that LPG futures and options are the first gas energy products in China's futures market and the first products to be launched simultaneously with futures options. The listing of liquefied petroleum gas futures and options is an important measure for the futures market to implement the concept of green development and promote the improvement of the energy price formation mechanism. It is a major progress in the construction of a domestic energy futures market system represented by coal, oil, and gas.
The picture shows the speech made by Fang Xinghai, vice chairman of the China Securities Regulatory Commission. Photo courtesy of Dashang
Since the beginning of this year, due to various factors such as the new crown pneumonia epidemic, the international commodity and financial markets have fluctuated violently. Real companies generally face problems such as high inventory, difficult sales, poor industrial chain operation, and tight raw materials and cash flows. Operating risks have suddenly increased.
Fang Xinghai said that during the epidemic, the function of risk management in the futures market was prominent, and its role became more and more significant. It contributed to the "future strength" in fighting the epidemic, promoting resumption of production and stabilizing production and operation of enterprises. The futures industry is more active in creating over-the-counter tools such as "mask options", "glove options" and "disinfectant options" to directly support epidemic prevention production enterprises to stabilize spot supply prices and ensure production of epidemic prevention materials.
"The futures market provides a strong guarantee for corporate hedging and avoiding price risks." Fang Xinghai said that the futures delivery mechanism and warehouse receipt trading platform help companies overcome logistics obstacles, purchase raw materials, realize sales, and reduce inventory; supporting futures warehouse receipts Financial services help companies effectively revitalize their cash and ease cash flow pressure.
He also pointed out that the more uncertain the market is, the more it is necessary to manage risk, and the futures market can do much better in this regard. In this regard, we should continue to innovate tools, increase market supply, improve the quality of market operations, expand opening to the outside world, and provide enterprises and investors with richer risk management tools.
It is understood that liquefied petroleum gas is the 20th futures product and 4th option product of Dashang Institute, as well as the first energy product. Since its establishment in 1993, Dashang's listed products have covered the three major sectors of agricultural products, chemicals and blacks.
Li Zhengqiang, the chairman of the Dashang Institute, said that the listing of liquefied petroleum gas futures and options, as well as the container capacity futures previously approved for the project, indicates that the listed products of the Dashang Institute will expand to five major sectors: energy and shipping. (Finish)