The China International Derivatives Forum convenes in the southern city of Shenzhen today. Top heads of commodities exchanges from all around the world are contributing ideas for China’s futures market.
The Margin system initiated by China’s futures market has been proven effective for minimizing financial trade risks. The measure has also attracted attentions from many foreign companies. The Chicago Mercantile Exchange is among them.
Phupinder Gill, CEO of the Chicago Mercantile Exchange, calling it an innovation for risk management.
Starting early this year, China launched quite a few futures commodities including iron ore, eggs and Japonica rice futures. And the establishment of the Shanghai Free Trade Zone has lifted barriers for foreign companies to enter China. Experts say supervision from the government is also vital for the future health of the market.
According to Jiang Yang, Vice Chairman of the China Securities Regulatory Commission, the country has plan to launch even more futures commodities. Jiang says China will work to facilitate the strategic resources represented by crude oil, one of the world’s most important resources, to go public and allow foreign capital into Chinese futures companies.
"We are working on the crude oil going public process. Recently we have carried out the crude oil trade system test and launched the Shanghai International Energy Exchange, they will push ahead with various preparatory work for the listing of crude oil futures and the maintenance after crude oil futures formally launches." said Jiang Yang.
As China works to build its international financial center by establishing the Shanghai Free Trade Zone and carrying out financial reform, an expanded list of futures commodities markets could be expected.
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The China International Derivatives Forum convenes in the southern city of Shenzhen today. Top heads of commodities exchanges from all around the world are contributing ideas for China’s futures market.
