Zhu Lihong, General Manager of the Guangdong Futures Exchange: Explore new ways and new paths for the futures market to serve the green transformation and development of China's economy.
Zhu Lihong, general manager of Guangzhou Futures Exchange, stated at the 17th China (Shenzhen) International Futures Conference on December 5 that in the face of many product innovations, new research fields and new investment groups, in-depth research, deep understanding and further improvement of innovation capabilities are required. The Guangzhou Futures Exchange will strengthen close cooperation with entity companies and related spot markets, and jointly explore new ways and new paths for the futures market to serve the green transformation and development of China's economy. As a newly established futures exchange, the Guangzhou Futures Exchange is based on the overall requirements of "serving green development, serving the Guangdong-Hong Kong-Macao Greater Bay Area, and serving the "One Belt One Road" initiative". In accordance with the basic principles of "differentiated positioning and misplaced development" determined by the China Securities Regulatory Commission, adhere to the development positioning of innovation, marketization and internationalization, actively serve the carbon peak and carbon neutral goals, and help the economic and social green and low-carbon transformational development.
Zhu Lihong said that according to the two-year product listing plan of the Guangzhou Futures Exchange approved by the China Securities Regulatory Commission, the products of the Guangzhou Futures Exchange mainly involve 4 major sectors and 16 varieties. Among them, green development products such as carbon emission futures are the core strategic sectors. China has the world's largest carbon market, and the free carbon allowance issued by the Ministry of Ecology and Environment in 2021 is approximately 4.3 billion tons. After the listing of carbon futures, China has the potential to become the world's largest carbon derivatives market. The China Securities Regulatory Commission attaches great importance to the construction of the carbon futures market. The Guangzhou Futures Exchange will also work closely with the spot industry to better utilize the functions of price discovery and risk management to help China achieve its carbon peak and carbon neutral goals, and reflect China's responsibility as a major country in addressing climate change.
At the same time, focusing on green and sustainable development, the Guangzhou Futures Exchange will also promote the listing of secondary energy-electric power futures, as well as new energy-related industrial silicon, polysilicon, lithium, rare earth, platinum and palladium and other metal varieties. In the field of traditional bulk commodities, China is usually the most important importer, but in terms of industrial silicon, polysilicon, rare earth and other varieties, China is the world's largest producer. Carrying out the futures trading of these varieties will help the futures market to improve China's pricing power and international influence.
"Commodity index futures is another important product sector planned by the Guangzhou Futures Exchange. It will fill another gap in the Chinese futures market." Zhu Lihong said that the Guangzhou Futures Exchange is stepping up the development of commodity composite index futures. The latter will rely on existing futures varieties to organically combine a variety of commodity futures, and from the perspective of the futures market, provide a commodity futures price index contract that reflects the operation of China's economy. It has important benchmarking significance for China's macroeconomics and will provide an important tool for domestic and foreign capital allocation in China, thereby effectively improving the investor structure of the futures market, continuously improving the operational quality and efficiency of the futures market, and further enhance the international influence of the Chinese futures market.
In addition, the Guangzhou Futures Exchange promotes the listing of specialty agricultural products such as coffee and sorghum, focusing on serving the construction of the Guangdong-Hong Kong-Macao Greater Bay Area and the national "One Belt One Road" initiative, and strengthens cooperation with domestic and foreign exchanges such as the Hong Kong Stock Exchange in product interlinking. At the same time, it is proactive, pioneering and innovative in the construction of the futures market in the Guangdong-Hong Kong-Macao Greater Bay Area.
She believes that China has entered a new stage of development during the "14th Five-Year Plan" period. The adjustment of energy structure, industrial structure, and economic structure is accelerating, and both traditional energy and new energy are facing the restructuring of the industrial chain. The short-term contradiction between supply and demand has become prominent, and the construction of the carbon market and the tight power supply situation have aroused widespread concern in the market. This has brought major challenges to both the commodity futures and spot markets. At the same time, the Guangzhou Futures Exchange is also aware of the huge opportunities contained therein. The more the transition period, the more it is necessary for the futures market to give play to its unique advantages in price discovery and risk management.