China's unique futures variety goes to the world

China is the largest producer and consumer of PTA. At present, PTA's upstream product PX is mainly from Japan and Korea, and domestic PTA production is relatively concentrated in the eastern coastal areas，enterprises are highly recognized and highly engaged in the futures market mechanism. It can be said that the opening of PTA futures to foreign investors is based on a very mature domestic spot market. In 2017, the functional level of PTA futures ranked fourth among 25 industrial futures and ranked first among chemical futures. However, in terms of upstream PX import pricing and downstream polyester product export pricing, China’s pricing influence needs to be improved.

For this reason, the internationalization of PTA futures is very necessary. Among futures varieties that China has allowed foreign investors to participate in, crude oil futures and iron ore futures are the forerunners. PTA futures is China's unique futures variety and is currently the only polyester futures product in the world. The introduction of PTA futures into overseas traders provides the world with an efficient PTA futures trading platform, which will increase the pricing influence of PTA futures globally and promote the Zhengzhou Commodity Exchange to become the global pricing center for polyester products.

Zhu Hao, director of the Information Department of the China Petroleum and Chemical Industry Federation, said that the introduction of PTA futures into overseas traders will help optimize the structure of PTA futures market participants, form a more representative pricing benchmark, and increase the recognition of PTA futures prices by overseas companies. Furthermore，it will increase the pricing influence of PTA futures globally and promote the growth of international trade in PTA and polyester products.

“Just focusing on production is the biggest risk. PTA introduces foreign investors, and our domestic enterprises must thoroughly study the relevant rules and try our best to hedge against the unpredictable market conditions.” Liu Dewei, general manager of Fujian Jinlun High Fiber Co., Ltd. Said.

Yisheng Petrochemical is the world's largest PTA spot production enterprise, with an annual production capacity accounting for 28% of China's total PTA production capacity. The relevant person in charge said in an interview that Yisheng Petrochemical has basically completed the scale development of polyester and PTA, and has begun to extend to the upstream refining and chemical project, and is committed to becoming a company with full industrial chain and anti-cyclical risk capability.

Foreign markets have a very high demand for participating in PTA futures. On the morning of November 30, after becoming the first overseas trader to participate in China's crude oil and iron ore futures trading, Glencore also won the first transaction of an offshore trader to participate in the PTA1909 contract. On the same day, the company commissioned Futures Co., Ltd. through Shirui Financial Services Co., Ltd. to conduct the transaction. In addition, Italian GSI companies, American Koch Industries, BP and other overseas companies have expressed their willingness to participate. Mercuria is a global energy and commodities trading company, the relevant person in charge of the company said in an interview that Mercuria has set up a branch in China and is the first overseas participant in crude oil and iron ore futures. PTA futures have good market liquidity and with the largest volume and open interest among chemical futures in China, the market functions well and they will continue to actively participate.

Delivery system is different

The international trade volume of upstream and downstream products of PTA is relatively large, and the major trading countries are distributed on the “Belt and Road”. In 2017, China imported PX 14.43 million tons, with an import dependence of 59%; China's polyester products exported 5.47 million tons, accounting for 15% of domestic production. The import and export trade objects of PTA's upstream and downstream products are highly compatible with the countries involved in the “Belt and Road”. For example, downstream polyester filaments are exported to Turkey, Egypt, and Vietnam; downstream bottles are exported to the Philippines, Indonesia, India, South Africa, and Ukraine. Therefore, the internationalization of PTA futures will promote the circulation of RMB on the “Belt and Road” and be in line with the internationalization of the RMB.

Previously, the internationalization of crude oil futures and iron ore futures went smoothly, providing a well-equipped policy environment. The internationalization of PTA futures continues to innovate on the basis of the first two specific varieties, and its highlights include: In terms of appropriateness, PTA futures have adopted mutual recognition of appropriateness. Traders who have trading rights or transaction codes for specific varieties of other domestic futures exchange, and traders who will open accounts for the second time may be exempted from the requirements of knowledge testing, applicable funds, and trading experience. In addition, professional investors who meet the requirements of the “Administrative Measures for the Appropriateness of Securities and Futures Investors” may also be exempted. Guo Shuhua, director of the Non-Agricultural Products Department of Zhengzhou Commodity Exchange, said that this is to provide convenient access for domestic and foreign customers. At present, 78 overseas customers have successfully opened accounts.

In terms of the delivery system, the introduction of PTA futures to foreign traders is different from crude oil and iron ore futures. Crude oil futures are net price transactions, all warehouse receipts are bonded warehouse receipts. When delivery is matched, there is no situation where overseas buyers are assigned to duty-paid warehouse receipts. Iron ore futures will ensure that foreign traders can receive bonded warehouse receipts by introducing warehouse receipt service providers to provide warehouse order exchange services. PTA Futures introduces the export service provider system to provide agency services for exporting goods to overseas buyers who are willing to participate in the delivery of goods. And add the clause " when PTA futures contracts are matched for delivery on the last trading day, the registered bonded receipts of PTA used for delivery shall be allocated to overseas buyers preferentially.", where the positions for delivery held by the overseas buyers are greater than the number of registered bonded receipts, the registered bonded receipts shall be allocated to the overseas buyers holding positions for a longer time in priority to as far as possible to meet the needs of enterprises with real hedging needs. Relevant persons from the Zhengzhou Commodity Exchange also said that more futures such as methanol will enter the international arena in the future.

附：中英文对照

中国独有的期货品种走向世界

China's unique futures variety goes to the world

中国是最大的PTA生产国和消费国。目前，PTA的上游产品PX主要来自日、韩，国内的PTA生产相对集中在东部沿海地区，企业对期货市场机制高度认可且参与度高。可以说，PTA期货对境外投资者开放是建立在一个非常成熟的国内期现货市场基础之上的。2017年，PTA期货的功能发挥程度在25个工业品期货品种中位列第四，在化工品期货品种中排第一。但是，在上游PX进口定价与下游聚酯产品出口定价方面，中国的定价影响力还有待提升。

China is the largest producer and consumer of PTA. At present, PTA's upstream product PX is mainly from Japan and Korea, and domestic PTA production is relatively concentrated in the eastern coastal areas，enterprises are highly recognized and highly engaged in the futures market mechanism. It can be said that the opening of PTA futures to foreign investors is based on a very mature domestic spot market. In 2017, the functional level of PTA futures ranked fourth among 25 industrial futures and ranked first among chemical futures. However, in terms of upstream PX import pricing and downstream polyester product export pricing, China’s pricing influence needs to be improved.

正因如此，PTA期货国际化十分必要。在中国已经允许境外投资者参与的期货品种中，原油期货和铁矿石期货是先行者。PTA期货是中国独有的期货品种，也是目前全球唯一一个聚酯类期货品种。PTA期货引入境外交易者，为世界提供了一个高效的PTA期货交易平台，将提升PTA期货在全球的定价影响力，推动郑州商品交易所成为全球聚酯类产品定价中心。

For this reason, the internationalization of PTA futures is very necessary. Among futures varieties that China has allowed foreign investors to participate in, crude oil futures and iron ore futures are the forerunners. PTA futures is China's unique futures variety and is currently the only polyester futures product in the world. The introduction of PTA futures into overseas traders provides the world with an efficient PTA futures trading platform, which will increase the pricing influence of PTA futures globally and promote the Zhengzhou Commodity Exchange to become the global pricing center for polyester products.

中国石油和化学工业联合会信息部主任祝昉表示，PTA期货引入境外交易者，有助于优化PTA期货市场参与者结构，形成具有更加广泛代表性的定价基准，提高境外企业对PTA期货价格的认可度，提升PTA期货在全球的定价影响力，促进PTA及聚酯产品国际贸易量增长。

Zhu Hao, director of the Information Department of the China Petroleum and Chemical Industry Federation, said that the introduction of PTA futures into overseas traders will help optimize the structure of PTA futures market participants, form a more representative pricing benchmark, and increase the recognition of PTA futures prices by overseas companies. Furthermore，it will increase the pricing influence of PTA futures globally and promote the growth of international trade in PTA and polyester products.

“仅仅关注生产是最大的风险。PTA引进境外投资者，我们境内企业一定要把相关规则研究透彻，在市场行情变化莫测的情况下尽力做好套期保值。”福建省金纶高纤股份有限公司总经理刘德伟这样说。

“Just focusing on production is the biggest risk. PTA introduces foreign investors, and our domestic enterprises must thoroughly study the relevant rules and try our best to hedge against the unpredictable market conditions.” Liu Dewei, general manager of Fujian Jinlun High Fiber Co., Ltd. Said.

逸盛石化是全球最大的PTA现货生产企业，年产能约占我国PTA总产能的28%。其相关负责人接受采访时表示，逸盛石化已基本完成了在聚酯、PTA环节的规模化发展，开始延伸到上游的炼化项目，致力成为具有全产业链、抗周期性风险能力的企业。

Yisheng Petrochemical is the world's largest PTA spot production enterprise, with an annual production capacity accounting for 28% of China's total PTA production capacity. The relevant person in charge said in an interview that Yisheng Petrochemical has basically completed the scale development of polyester and PTA, and has begun to extend to the upstream refining and chemical project, and is committed to becoming a company with full industrial chain and anti-cyclical risk capability.

国外市场对于参与PTA期货的需求非常高。11月30日上午，继成为参与中国原油、铁矿石期货交易的第一个境外交易者之后，嘉能可公司又夺得境外交易者参与PTA1909合约的第一笔交易。当日，该公司通过时瑞金融服务有限公司委托某期货有限公司开展交易。此外，意大利GSI公司、美国科氏工业公司、BP等境外企业多次表达了参与意愿。摩科瑞是一家全球性的能源和大宗商品贸易公司,公司相关负责人接受记者采访时表示，摩科瑞公司已在中国成立了分公司，是原油和铁矿石期货首批境外参与者，PTA期货具有较好的市场流动性，是中国成交持仓规模最大的化工品期货，市场功能发挥良好，他们将持续积极参与。

Foreign markets have a very high demand for participating in PTA futures. On the morning of November 30, after becoming the first overseas trader to participate in China's crude oil and iron ore futures trading, Glencore also won the first transaction of an offshore trader to participate in the PTA1909 contract. On the same day, the company commissioned Futures Co., Ltd. through Shirui Financial Services Co., Ltd. to conduct the transaction. In addition, Italian GSI companies, American Koch Industries, BP and other overseas companies have expressed their willingness to participate. Mercuria is a global energy and commodities trading company, the relevant person in charge of the company said in an interview that Mercuria has set up a branch in China and is the first overseas participant in crude oil and iron ore futures. PTA futures have good market liquidity and with the largest volume and open interest among chemical futures in China, the market functions well and they will continue to actively participate.

交割制度有所不同

Delivery system is different

PTA上下游产品国际贸易量较大，且主要贸易国家分布在“一带一路”上。2017年中国进口PX1443万吨，进口依存度59%；中国聚酯产品出口量547万吨，占国内产量的15%。PTA上下游产品进出口贸易对象与“一带一路”相关国家高度契合。比如，下游聚酯长丝的出口对象包括土耳其、埃及和越南等；下游瓶片出口到菲律宾、印尼、印度、南非、乌克兰等。因此，PTA期货国际化，将促进“一带一路”上人民币的流通，与人民币国际化方向一致。

The international trade volume of upstream and downstream products of PTA is relatively large, and the major trading countries are distributed on the “Belt and Road”. In 2017, China imported PX 14.43 million tons, with an import dependence of 59%; China's polyester products exported 5.47 million tons, accounting for 15% of domestic production. The import and export trade objects of PTA's upstream and downstream products are highly compatible with the countries involved in the “Belt and Road”. For example, downstream polyester filaments are exported to Turkey, Egypt, and Vietnam; downstream bottles are exported to the Philippines, Indonesia, India, South Africa, and Ukraine. Therefore, the internationalization of PTA futures will promote the circulation of RMB on the “Belt and Road” and be in line with the internationalization of the RMB.

之前，原油期货和铁矿石期货国际化顺利先行，提供了配套齐备的政策环境。PTA期货国际化在前两个特定品种基础上继续创新，其亮点包括：在适当性方面，PTA期货采取了适当性互认。已开通或开立其他境内期货交易所特定品种交易权限或交易编码的交易者、二次开户的交易者可豁免知识测试、适用资金、交易经历的要求。此外，符合《证券期货投资者适当性管理办法》规定的专业投资者也可豁免。郑州商品交易所非农产品部总监郭淑华表示，这是为了给境内外客户提供便捷参与通道，目前已经有78个境外客户开户成功。

Previously, the internationalization of crude oil futures and iron ore futures went smoothly, providing a well-equipped policy environment. The internationalization of PTA futures continues to innovate on the basis of the first two specific varieties, and its highlights include: In terms of appropriateness, PTA futures have adopted mutual recognition of appropriateness. Traders who have trading rights or transaction codes for specific varieties of other domestic futures exchange, and traders who will open accounts for the second time may be exempted from the requirements of knowledge testing, applicable funds, and trading experience. In addition, professional investors who meet the requirements of the “Administrative Measures for the Appropriateness of Securities and Futures Investors” may also be exempted. Guo Shuhua, director of the Non-Agricultural Products Department of Zhengzhou Commodity Exchange, said that this is to provide convenient access for domestic and foreign customers. At present, 78 overseas customers have successfully opened accounts.

在交割制度方面，PTA期货引入境外交易者不同于原油、铁矿石期货。原油期货为净价交易，所有仓单均为保税仓单，交割配对时，不存在境外买方配到完税仓单的情形；铁矿石期货通过引入仓单服务商，以提供仓单串换服务的方式，确保境外交易者都能接到保税仓单。PTA期货引入出口服务商制度，为有意愿参与交割接货的境外买方提供代理交割并将货物出口的服务，并添加“将PTA保税仓单优先分配给境外买方”这一条款，当保税仓单比例不充足时，境外买方之间按照“持仓时间长者优先配对”，以最大程度划分出有真实套保需求的企业。郑州商品交易所相关人士还表示，未来将会有甲醇等更多期货品种走上国际舞台。

In terms of the delivery system, the introduction of PTA futures to foreign traders is different from crude oil and iron ore futures. Crude oil futures are net price transactions, all warehouse receipts are bonded warehouse receipts. When delivery is matched, there is no situation where overseas buyers are assigned to duty-paid warehouse receipts. Iron ore futures will ensure that foreign traders can receive bonded warehouse receipts by introducing warehouse receipt service providers to provide warehouse order exchange services. PTA Futures introduces the export service provider system to provide agency services for exporting goods to overseas buyers who are willing to participate in the delivery of goods. And add the clause " when PTA futures contracts are matched for delivery on the last trading day, the registered bonded receipts of PTA used for delivery shall be allocated to overseas buyers preferentially.", where the positions for delivery held by the overseas buyers are greater than the number of registered bonded receipts, the registered bonded receipts shall be allocated to the overseas buyers holding positions for a longer time in priority to as far as possible to meet the needs of enterprises with real hedging needs. Relevant persons from the Zhengzhou Commodity Exchange also said that more futures such as methanol will enter the international arena in the future.