The size and influence of the futures market is rapidly increasing

  Since the 18th National Congress of the Communist Party of China, the Party Central Committee with Comrade Xi Jinping at its core has attached great importance to the development of the futures and derivatives market.

The rapid economic development and the open and inclusive market ecological environment have promoted the rapid increase in the scale and influence of China's futures market.

my country has initially established a futures derivatives market that matches the level of economic and financial development, meets the needs of risk management, and is highly competitive, and has gradually formed a market-oriented pricing system with futures prices as the core and with certain international influence.

  The variety is increasingly rich, and the transaction continues to grow

  my country is entering an important stage from a big petrochemical country to a powerful petrochemical country.

In the futures market, energy futures varieties such as crude oil, low-sulfur fuel oil, fuel oil, and petroleum asphalt are operating steadily, and they have better played the role of price "baton", market "ballast stone" and risk "isolation zone". The derivative products and services combined with it provide an important guarantee for the production, operation and innovative development of my country's oil enterprises.

  The excellent performance of energy futures is the epitome of the development of my country's futures industry.

my country's futures market has continuously expanded the coverage of varieties, and has formed the non-ferrous industry represented by copper, the steel industry represented by iron ore rebar, the pressing and breeding industry represented by oil and oil, and the energy industry represented by crude oil. The system of varieties of industrial chains basically covers the main fields of national economic development.

The prices of important varieties such as copper, PTA and soybean meal have become the benchmark for spot trade pricing.

  According to the statistics of the Futures Industry Association (FIA) of the United States, in the ranking of the global trading volume of various futures and options varieties in the first half of 2022, Chinese varieties occupy 16 of the top 20 agricultural products and 14 of the top 20 metal varieties. , occupying 5 seats in the top 20 energy varieties and 3 seats in the top 20 precious metal varieties.

  In the past 10 years, there have been 76 newly listed futures and options varieties in my country, which is more than double the number of varieties listed in the past 20 years.

The total capital of my country's futures market exceeded 1.6 trillion yuan, and the total position exceeded 36 million lots, both hitting record highs.

my country has been the world's largest commodity futures market for 12 consecutive years.

Shanghai Futures Exchange has become the world's largest ferrous metal futures market and the second largest non-ferrous metal futures market; Dalian Commodity Exchange has become the world's largest agricultural futures market; Zhengzhou Commodity Exchange's cotton yarn futures, cotton futures, and PTA futures have become textile The "Three Musketeers" of enterprises' hedging risks, known as the "wind vane of the global textile market"... In 2021, in the ranking of global exchanges by trading volume, Zhengzhou Commodity Exchange, Shanghai Futures Exchange, Dalian Commodity Exchange and China Financial Futures The exchanges ranked 7th, 8th, 9th and 27th respectively.

  According to relevant data from the China Futures Association, in the first half of 2022, the cumulative trading volume and turnover of the futures market were 3.046 billion lots and 257.48 trillion yuan, respectively, 6.17 times and 3.78 times that of the same period in 2012.

As of the end of May this year, the total equity of market customers was 1.39 trillion yuan, and the number of institutional customers in the whole market reached 75,700, an increase of 6.7 times and 2.8 times respectively compared with the end of 2012.

  As of the end of June 2022, the proportion of individual and institutional transactions in the futures market was about 57.8% and 42.2%. Compared with 2012, the proportion of institutions increased by 33.2 percentage points.

The relevant person in charge of the China Futures Association said that as of the first half of this year, 150 futures companies had total assets of about 1.6 trillion yuan, net assets of 170 billion yuan, and net capital of 100 billion yuan, an increase of 30%, 19%, and 31% respectively over the same period last year. %.

The situation of futures companies "increasing production but not increasing income" for many years has improved.

In addition to brokerage business, innovative businesses such as risk management, asset management, and investment consulting have gradually become new profit growth points.

The business model of futures companies continues to expand, and gradually realizes the transformation from channel business to comprehensive derivatives service provider.

  Market construction presents distinctive Chinese characteristics

  Guangzhou Futures Exchange and China Securities Commodity Index Company were established successively.

The construction of my country's futures market has been steadily advancing, and business such as basis trading and comprehensive warehouse receipt services have continued to deepen. In addition to providing price signals, it also provides logistics and financing services, realizing futures and spot, on-site and off-site, online and online. The interconnection and interoperability of the futures market has effectively expanded the depth and breadth of the futures market serving the real economy, and promoted the transformation of my country's futures derivatives market from a single, shallow-level market system to a multi-level three-dimensional market system with futures and spot docking, and on-site and off-site docking.

  In the extraordinary course of development, my country's futures market presents distinct Chinese characteristics.

  The first is the introduction of futures varieties with Chinese characteristics.

Relying on my country's complete industrial system, we have explored the intermediate products of the important industrial chain of the national economy. There are 25 intermediate product futures represented by PTA, fuel oil, plastics and other varieties on the market, of which 19 are unique listed varieties in my country and have been received by the domestic market. Widespread attention from foreign markets, especially the successful listing and operation of methanol, hot-rolled coils and other products, has attracted overseas exchanges to develop and list similar products.

The positive role of intermediate product futures in providing services, ensuring supply and stabilizing prices, and enhancing the resilience of the industrial chain has initially emerged.

  For example, in the polyester industry chain, PTA production enterprises that have participated in my country's PTA futures account for 94% of the country's total production capacity.

PTA futures prices have not only become the pricing benchmark for domestic spot trade, but have gradually become an important pricing reference for upstream and downstream products such as paraxylene (PX) and bottle flakes. Pricing.

At the same time, PTA futures are also an international variety. Overseas companies such as BP and Mercuria actively participate in my country's PTA futures.

Since last year, in the context of the sharp fluctuations in international crude oil prices, the price increase of PTA is 22.8 percentage points lower than that of international crude oil, which buffers the impact of upstream price increases on the downstream polyester industry and textile industry to a certain extent.

  It has become a trend to develop intermediate product futures to enhance the global competitiveness of my country's industrial chain and supply chain, and to build a commodity pricing center with Chinese characteristics.

  The second is to build a regulatory system with Chinese characteristics.

Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said that my country's futures market adheres to the bottom-line thinking, combines the actual development, and establishes a futures market monitoring center. Exchange, China Futures Market Monitoring Center and China Futures Association "five-in-one" futures supervision system, and through the Futures and Derivatives Law, the characteristic supervision system has been determined in the form of national laws, which reflects the reference to international best practices and based on national conditions. The organic unity of market conditions.

  The third is to innovate the business model with Chinese characteristics.

The ability to serve the real economy has been greatly improved, assisting national strategies such as poverty alleviation and rural revitalization, creating and steadily expanding the "insurance + futures" model, building a linkage mechanism between agricultural subsidies, agricultural product futures and agricultural insurance, and forming a transfer of agricultural product market risks to the futures market. , A closed loop in which the futures business entity is ultimately borne and the agricultural business entity benefits.

  Price influence is gradually internationalized

  Entering a new stage of development, my country is facing more profound and complex environmental changes. It is very urgent to increase the global influence on the allocation of factor resources and maintain the stability of the industrial chain and supply chain.

As a sub-item of the capital market, the futures market, in accordance with the requirements of the Party Central Committee and the State Council, further deepens the reform, guides the circulation and allocation of resources such as commodities and capital on a global scale through futures prices, and expresses the "Chinese voice" in its own unique way. Produce "China Influence".

  TSR 20 is the main basic raw material for the tire industry.

In recent years, with the vigorous development of the automobile industry, my country has become the world's largest tire manufacturer.

In 2019, when TSR20 futures of Shanghai International Energy Exchange were first launched, it was converted into tons, which was lower than the open interest of similar products on the Singapore Exchange. As of June 2022, the trading volume and open interest of Shanghai TSR20 futures It is already 23 times and 4 times that of similar products on the Singapore Exchange.

In the past, domestic and foreign tire companies set their prices with reference to the price of the Singapore Exchange. Now the volume of Shanghai TSR 20 futures has increased, making domestic and foreign companies more willing to come to Shanghai to participate in transactions, and the resulting price is more acceptable and used by the industry. .

In the first half of this year, the physical trade volume using Shanghai TSR 20 futures as the benchmark for cross-border trade pricing was nearly 1.4 million tons, with a value of over 15 billion yuan, accounting for about 30% of my country's natural rubber imports.

The increase in the trading scale and liquidity of TSR20 futures has attracted more domestic and foreign companies to participate in trading on the Chinese platform. The resulting futures price contains the voice of the world, and a virtuous circle is formed, and the price obtained is more easily sold by domestic and foreign companies. recognized and used by the industry.

  Improving the price influence of important commodities, better serving and leading the development of the real economy are the major missions of the futures market in the new era.

At present, my country's futures market has 9 international varieties: crude oil futures, crude oil options, TSR 20 futures, low-sulfur fuel oil futures, iron ore futures, PTA futures, international copper futures, palm oil futures, palm oil options.

The "China Platform" attracts global participation, brings together the world's voices, and has an increasing global influence.

For example, Shanghai crude oil futures has become the third largest crude oil futures market in the world, and its price influence has gradually radiated to the Asia-Pacific region.

  The accelerated progress of the internationalization of the futures market is a silhouette of my country's orderly promotion of financial opening and the promotion of reform through opening up.

Hu Yuyue, director of the Securities and Futures Research Institute of Beijing Technology and Business University, told reporters that the participation of international financial service institutions and international investors has objectively played a positive role in expanding the transaction scale of my country's futures market, improving market operation quality and pricing efficiency, and improving investor structure. .

JPMorgan Chase Futures became the first wholly foreign-owned futures company.

In accordance with the principle of "bringing in and going out", the futures market promotes the opening-up and internationalization process in an orderly manner, and facilitates the allocation of global customer resources and risk management.

  After more than 30 years of overcoming obstacles, my country's futures industry has achieved remarkable results.

From futures trading, futures rules, futures supervision, futures investor protection, futures functions, futures opening, and futures poverty alleviation, all reflect the distinctive Chinese characteristics and have a significant impact.

In the future, China Futures Market will further effectively serve and lead the development of the real economy and contribute to the overall development of the country.

  Zhu Huichun