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The 13rd China International Future Forum

Fang submitted 2017-12-06 16:58:50

Fang Xinghai (Vice chairman of the CSRC):

At present, Crude Oil futures has entered into the final sprint stage after years preparation. Making crude oil the starting point of comprehensive opening up of Chinese future market. Prepare for the launch of crude oil futures, to promote the introduction of iron future to foreign investor, and also prepare for the introduction of other mature product to foreign investors.

preparation of launch of apple future is almost ready, which strengthen to help the poor and to serve agriculture, rural areas and farmers.

Next, exchanges will devote to more futures and option product, such as paper pulp, Red Dates, No.20 Standard Rubber, 2year treasury bond, hog, carbamide, copper options and etc. All of above is aimed to promote the development of futures market via products innovation, therefore to improve its coverage and expand its influence.

China will keep independency, openness and win-win cooperation as its core principle, to accelerate the two-way opening of the futures market.

The first step is to accelerate the pace of the introduction of foreign investor to participate in the Chinese market. Making Crude Oil Futures the starting point of comprehensive opening of Chinese future market, and prepare for the launch of crude oil future, actively promote the introduction of iron ore future with foreign investors. Also, prepare for the introduction of other mature product to foreign investors. Support and encourage more legitimate and trustworthy foreign investors to participate in domestic commodity futures trading.

Second is to expand the delivery zone both domestically and internationally. Continue to promote the normalization of bonded delivery, and continue to extend the varieties of products for bonded delivery and area for delivery. To satisfy the need of internationalization of future product, support will be given to exchanges for the establishment of oversea delivery warehouse and representative office, which can offer business entities with more abundant and convenient cross-broader pricing and risk management service.

The third step is to accelerate the development of internationalized Recently, Regulator planned to ease the investment proportion of foreign investment in Futures Company. The investment proportion of single or multiple foreign investors investing directly or indirectly in future company has been relaxed to 51%, and this threshold only applies for 3 years. Invitation of foreign stakeholders is intended to bring new concept and managerial methods for the development of Chinese future company, and to promote their market competitivity. At the meantime, it can provide necessary support and help of domestic future company to the global sphere.

The last one is to carry out flexible and diverse cooperation with foreign exchanges. Focus will be yield on countries and region along the one belt and one road. Cooperation could be taken with local exchanges via equity, product, business and other means based on exchanges own characteristics and advantages. Research will also be devoted to examine the feasibility of cross-linked product between domestic and foreign exchanges. Support will also given to enrich sino-euro exchange product line, which can provide foreign investors with China related risk management tools.

China Financial Futures Exchange:
1. Index Futures running smoothly for the past 2 years, positions of institutional investor have been improve steadily. CFFEX will push to accelerate the launch of Index Option
2. Institutional investors possess high level of position on CFFEX product (Index futures and treasury futures). However, such scenario does not mean that functions of financial futures have been put into full performance. Treasury futures, for instance, major institutional investor such as bank, insurance company and foreign institutions are not allowed to participate. Promote bank, insurance company and foreign institution to participate into treasury futures will be the major focus on our business schedule.

Shanghai Futures Exchanges:
1. Exchange will endeavor to enrich current existing non-ferrous metals, precious metals, black metals, energy and chemical these 5 future product lines.
2. Promote option, index derivatives and trade on warehouse receipt.

Shenzhen Exchange:
With the instruction of the CSRC, Shenzhen Exchange had started stimulation work on stock option. For nearly 3years, the whole simulation ran smoothly, and conditions to carry out the pilot option in Shenzhen have been fully established.

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