On November 19, International Copper Futures was officially listed on the Shanghai International Energy Exchange (hereinafter referred to as INE). This is the sixth domestic and fourth international futures product under the Shanghai Futures Exchange.
It is worth to note that International Copper is China's first international futures contract operating in a "dual contract" model. Xinghai Fang, vice chairman of China Securities Regulatory Commission, stated at the international copper listing ceremony that he hopes that international copper futures will provide late-comer advantages and become one of the pricing benchmarks for cross-border copper trade in the Asia-Pacific time zone in the future.
The international copper listing has attracted much attention from the industry. From the perspective of market performance, the transaction on the first day was 1.968 billion yuan, and the overall operation was stable. Many foreign legal entities have participated in the transaction.
Another milestone in the internationalization of China's futures market
At 9 a.m. on November 19, 2020, International Copper Futures was officially listed for trading on INE, a subsidiary of Shanghai Futures Exchange.
Xinghai Fang, vice chairman of China Securities Regulatory Commission, said in his speech that the launch of the international copper futures using the “dual contract” is a new exploration of existed futures varieties, and it has the potential to further promote the deep integration of domestic and foreign copper industry chains and supply chains. It is hoped that international copper futures will provide the late-comer advantages and become one of the pricing benchmarks for cross-border copper trade in the Asia-Pacific zone in the future. It will enhance China's pricing influence in the global commodity market and promote the internationalization of RMB.
“In the 30 years since the establishment of China’s capital market, it has always adhered to the principles and direction of open cooperation, which has not only promoted the development and improvement of the capital market itself, but also promoted the high-quality development of the financial industry and the entire economy. An important step has been taken, marked by the listing of crude oil futures, international varieties have gradually increased, the proportion of transactions and positions held by overseas traders has steadily increased, and the influence of international pricing has continued to increase. NR20 futures have become the Benchmarks for China’s NR20 pricing and settlement for border spot trade. LU fuel oil futures will become the first open product in China's futures market to explore cross-border settlement services. It has only been listed for more than half a year, and its holdings exceed 200,000 lots, its influence will be further expanded. "Xinghai Fang pointed out.
Yan Jiang, the chairman of the Shanghai Futures Exchange, pointed out at the listing ceremony that copper has a high level of marketization and internationalization, and it is an important indicator of the global macro economy, and is known as the "Doctor Copper" China is the world's largest copper producer, consumer and importer. There are many upstream and downstream enterprises in the industrial chain, and there is a strong demand for risk management. The copper futures of Shanghai Futures Exchange have a long history, stable trading, reasonable structure, and effective functions. They have become the pricing benchmark for domestic spot trade. However, there are also problems such as low internationalization and limited service markets. The launch of international copper futures for global investors is another active exploration of China’s futures market. The international copper futures operated with the copper futures in Shanghai Futures Exchange simultaneously through the "dual platform" in a "dual contract" mode will better coordinate the domestic and international markets and resources; it has the positive significance for creating new advantages in international cooperation and competition in China's copper industry, and can be more comprehensively and efficiently meeting the needs of corporate risk management.
According to reports, Shanghai Futures Exchange will further provide high-quality product supply in the future, accelerate the launch of existing futures options products, and the development and listing of index futures; steadily expand the tradable varieties of standard warrants, and continue to expand the coverage of the entities; Expand opening up, speed up the internationalization of existing products with high-level supply system, continuously improve market openness and investment convenience, attract and serve global market entities to participate in, use or refer to commodity futures prices, and increase the level of supply and demand in the spot market based on the influence of the commodity prices.
Operated stably on the first day, foreign legal entities actively participating in the market.
International Copper ran smoothly on its first day of listing. The data shows that as of the close of November 19, the total trading volume of international copper futures was 8,300 lots (one-sided, the same below), the trading value was 1.968 billion yuan, and the total open interest was 2100 lots, of which BC2103 total trading volume was 7,600 lots. The transaction amount was 1.78 billion yuan. The closing price of BC2103 contract was 47,090 yuan/ton, down 1.24% from the listed benchmark price.
Honglin Ge, secretary of the Party Committee of China Nonferrous Metals Industry Association, said that the listing of international copper futures marks the formation of a "dual contract" service "dual cycle" pattern between copper futures and international copper futures on Shanghai Futures Exchange. It has great significance and important effect. Shanghai Futures Exchange will provide more continuous and transparent price signals and more effective risk control tools in order to help domestic and foreign companies to make better use of the two international and domestic markets and two kinds of resources, accelerating the pace of high-quality development, it means that China’s non-ferrous metals industry has made another important step in the process of internationalization”.
As an international variety that is open to the outside world, international copper has attracted the attention of foreign institutions on the first day of listing. It is understood that the number of members and customers participating in the auction on the first day of trading of international copper futures were 47 and 80 respectively, and the first batch of 267 lots (one-sided) was traded. The domestic and foreign copper industry chain companies that participated in the auction to reach the first batch of transactions include: Ningbo Group Co., Ltd., Jiangxi Copper Co., Ltd., Minmetals Nonferrous Metals Co., Ltd., Wanbao Mining., Ltd., ENVY GLOBAL TRADING PTE. LTD., TRIWAY INVESTMENT (HK) LIMITED, SUCDEN FINANCIAL LIMITED, Jiangxi Copper International Trade Co., Ltd., Yunnan Copper Co., Ltd., Hongyuan Hengli (Shanghai) Industrial Co., Ltd., Shanghai Yujiangyuan Trading Co., Ltd., BOCI Global Commodities Limited, LOBB HENG PTE LTD etc. It can be seen that there are many foreign legal entities participate in the market.
作为对外开放的国际化品种，国际铜在上市首日即得到了外资机构的关注。据了解，国际铜期货首日交易参与集合竞价的会员和客户分别为47家、80个，首批成交267手（单边）。参与集合竞价达成首批交易的境内外铜产业链企业，包括：中基宁波集团股份有限公司、江西铜业股份有限公司、五矿有色金属股份有限公司、万宝矿产有限公司、ENVY GLOBAL TRADING PTE. LTD.、TRIWAY INVESTMENT (HK) LIMITED、SUCDEN FINANCIAL LIMITED、江铜国际贸易有限公司、云南铜业股份有限公司、宏源恒利（上海）实业有限公司、上海裕江源贸易有限公司、BOCI Global Commodities Limited、LOBB HENG PTE LTD等。可以看到，其中有多家外资法人的身影。