On December 18, 2018, the 40th anniversary of the reform and opening up was held in Beijing. The 40th anniversary of reform and opening up has received much attention. The 15th Annual Global Conference of the International Finance Forum (IFF) held in late November also focused on this and held the " China's 40th Anniversary of Reform and Opening up ". At this meeting, many Professionals have expressed their views.

The following is an excerpt from the speech by Jiang Yang, former vice chairman of the China Securities Regulatory Commission at this meeting:

Commodity supply and demand affects global economic development. With the globalization of the economy, the economic exchanges between China and other countries have been very frequent, changing the state of closure in the past. In the past 40 years of reform and opening up, various reform measures have promoted the strong growth of China's economy and also promoted the development of the world economy.

China has become the world's second largest economy, becoming one of the largest markets for global commodities, and of course the United States. However, China's commodities are very broad-ranging, and the trade of commodities has changed China while also changing the world. China was insignificant in the world economy 40 years ago, but today it has become a new engine to lead the world's economic growth. China's GDP has grown from 0.3 trillion yuan in 1978 to 82.7 trillion yuan in 2017. The total import and export volume has increased from 0.02 trillion US dollars in 1978 to 4.1 trillion US dollars in 2017, the contribution rate to world economic growth has ranged from negligible to as high as 34%.

Commodity trade plays a very important role in the formation of new engines. Reform and opening up have benefited China and brought benefits to the whole world. This is an example of cooperation and win-win between countries with economic globalization. China and emerging economies will play a positive role in the next step of the new economic globalization. In the open world economy, they will move toward mutual prosperity through the complementarity of investment and trade, division of labor, cooperation, and learn from each other.

As the raw material for the front-end investment of the industrial chain, commodities have a profound impact on the development of the world economy, affecting the interests of various countries, and ensuring the stability of commodity supply and prices involving national economic security. Whether it is an exporting country or an importing country, the world's major economies have attached importance to the supply of commodities and the stability of prices.

In the past month, the price of crude oil futures has dropped from more than 80 US dollars a barrel to more than 50 US dollars a barrel. The fluctuation is very large, and the impact on the industrial chain of other products is also very large. In this process, the national economy is affected by the geopolitical game between big countries, which brings the price impact of commodities, and actually penetrates into political activities. This time, fluctuations in crude oil, we have seen the impact of geopolitics behind, such as the North Korean nuclear issue, the Iranian nuclear issue and the Syrian issue.

Three categories of commodities: crude oil, iron ore, and soybeans have a huge impact on China, and import dependence has reached about 60%. These three categories of commodities are linked to the industrial chain of chemical, steel, food processing. For example, crude oil, our eating and drinking, sleep, clothing, food and shelter are all closely related to crude oil, and the fluctuation of crude oil involves the interests of thousands of households. It is the most basic commodity, so the link between the US dollar and crude oil has important political, economic, diplomatic, and military significance.

From a financial point of view, how do commodities affect a country or other country's economy? The stability of commodity prices is of great significance. The futures market has an irreplaceable important role in the stability of commodity prices. This is from a financial point of view, because its transactions and its contracts generate leverage. The stability of prices is closely related to a country's economic security and political security. Therefore, the need to stabilize prices requires tools and hedging by the market.

The futures market is very necessary for a big country, because if the large economy does not build futures market, there is no place for hedging in the world. If so many companies in big countries and large economies do not use the local market to participate in other markets, there is no opportunity to formulate their own rules.

China's crude oil futures and iron ore futures have been listed and are open to foreign investors. There are commodity futures markets in the United States and Europe, mainly in the United States, but it is not enough to participate in the US crude oil futures market and the European futures market. Many Asian countries hope to have their own futures market in this region of Asia. As the largest economy in Asia, China should have the responsibility to establish a local futures market and provide opportunities for countries and companies that have a desire to conduct risk management in this market. Therefore, our opening up to the outside world is crucial.

From the enterprise perspective, the hedging function of the futures market can help companies enhance their competitiveness. For many years, China's financial reform has paid more attention to bank financing, focusing on securities financing, attaching importance to bank risk management and using securities for risk management, because the financial industry is a risk management industry. But the real use of derivatives for risk management has not been put in place for a long time.

“The Belt and Road” construction will bring a broad space to the commodity futures market. Related countries and regions of “The Belt and Road” are rich in resources and have a large population. They are the economic sector with the most growth and development potential in the world, and occupy an important position in the international commodity market.

In terms of energy, related countries and regions of“The Belt and Road” account for 80% of the world's natural gas reserves, and crude oil reserves account for 59% of the global total. In terms of mineral resources, iron ore, lead-zinc ore, etc. account for between 20% and 40% of the global total. The highest level of agricultural products is natural rubber, accounting for more than 90%, and corn and soybean production are also high.

In related countries and regions of “The Belt and Road”, important commodities such as palm oil, rubber and crude oil account for 91%, 78% and 67% of China's total imports respectively, which is very important to us and related countries.

Commodity trade involves national economic security. In addition to ensuring political, economic, diplomatic, and military functions, national economic security stands from the perspective of finance, and from the perspective of futures markets, it is the stability of commodity prices. Establishing China's domestic futures market, providing market trading opportunities, and being able to closely cooperate with various countries of “The Belt and Road”, to promote cooperation and win-win, and jointly move toward a new round of economic globalization.

附：中英文对照

中国证监会原副主席姜洋：“一带一路”给中国大宗商品期货市场带来广阔空间

Jiang Yang, former vice chairman of China Securities Regulatory Commission：“The Belt and Road” brings broad space to China's commodity futures market

2018年12月18日，庆祝改革开放40周年大会在北京举行。改革开放40周年广受关注，11月下旬举行的国际金融论坛（IFF）第15届全球年会也聚焦于此，举行了“中国改革开放40周年专题峰会”，在这次会议上，多位专业人士发表了自己的看法。

On December 18, 2018, the 40th anniversary of the reform and opening up was held in Beijing. The 40th anniversary of reform and opening up has received much attention. The 15th Annual Global Conference of the International Finance Forum (IFF) held in late November also focused on this and held the " China's 40th Anniversary of Reform and Opening up ". At this meeting, many Professionals have expressed their views.

以下为中国证监会原副主席姜洋在峰会上的发言内容摘编：

The following is an excerpt from the speech by Jiang Yang, former vice chairman of the China Securities Regulatory Commission at this meeting:

大宗商品供求影响全球的经济发展。伴随经济的全球化，中国和各国经济交往非常频繁，改变了过去封闭的状态。改革开放40年来，各项改革措施推动着中国经济的强劲增长，同时也带动了世界经济的发展。

Commodity supply and demand affects global economic development. With the globalization of the economy, the economic exchanges between China and other countries have been very frequent, changing the state of closure in the past. In the past 40 years of reform and opening up, various reform measures have promoted the strong growth of China's economy and also promoted the development of the world economy.

中国已经成为全球第二大经济体，成为全球大宗商品最大的市场之一，当然还有美国。但是中国大宗商品涉及的面非常广，大宗商品的贸易改变中国的同时也改变了世界。中国40年前在世界经济中微不足道，但是今天已经成为引领世界经济增长的新引擎。中国GDP从1978年的0.3万亿元人民币发展到2017年的82.7万亿元，进出口总额从1978年的0.02万亿美元增长到2017年的4.1万亿美元，对世界经济的增长贡献率从微不足道到高达34%。

China has become the world's second largest economy, becoming one of the largest markets for global commodities, and of course the United States. However, China's commodities are very broad-ranging, and the trade of commodities has changed China while also changing the world. China was insignificant in the world economy 40 years ago, but today it has become a new engine to lead the world's economic growth. China's GDP has grown from 0.3 trillion yuan in 1978 to 82.7 trillion yuan in 2017. The total import and export volume has increased from 0.02 trillion US dollars in 1978 to 4.1 trillion US dollars in 2017, the contribution rate to world economic growth has ranged from negligible to as high as 34%.

大宗商品贸易在新引擎的形成中起着非常重要的作用，改革开放让中国受益，也为全世界带来了好处，这是经济全球化各国之间合作共赢的范例。中国与新兴经济体对新型经济全球化下一步的引领将起到积极的作用，他们在开放的世界经济中通过投资贸易的互补、分工、合作、取长补短，将迈向共同致富。

Commodity trade plays a very important role in the formation of new engines. Reform and opening up have benefited China and brought benefits to the whole world. This is an example of cooperation and win-win between countries with economic globalization. China and emerging economies will play a positive role in the next step of the new economic globalization. In the open world economy, they will move toward mutual prosperity through the complementarity of investment and trade, division of labor, cooperation, and learn from each other.

大宗商品作为产业链前端投资的原材料，对世界经济发展有着全面深刻的影响，牵动着各国间的利益关系，保障大宗商品供应和价格的稳定涉及国家经济安全。无论是出口国，还是进口国，世界主要经济体都重视大宗商品的供应和价格的稳定。

As the raw material for the front-end investment of the industrial chain, commodities have a profound impact on the development of the world economy, affecting the interests of various countries, and ensuring the stability of commodity supply and prices involving national economic security. Whether it is an exporting country or an importing country, the world's major economies have attached importance to the supply of commodities and the stability of prices.

最近一个月以来，原油期货的价格从80多美元一桶降到50多美元一桶，波动非常大，对其他产品产业链影响也非常大。国家经济在这个过程当中，受到大国间的地缘政治博弈的影响，带来大宗商品的价格影响，实际上是渗透到政治活动当中。这一次原油的波动，我们就看到了背后地缘政治的影响，比如朝鲜核问题、伊朗核问题以及叙利亚问题等。

In the past month, the price of crude oil futures has dropped from more than 80 US dollars a barrel to more than 50 US dollars a barrel. The fluctuation is very large, and the impact on the industrial chain of other products is also very large. In this process, the national economy is affected by the geopolitical game between big countries, which brings the price impact of commodities, and actually penetrates into political activities. This time, fluctuations in crude oil, we have seen the impact of geopolitics behind, such as the North Korean nuclear issue, the Iranian nuclear issue and the Syrian issue.

三个类别的大宗商品：原油、铁矿石、大豆对中国影响巨大，进口依存度都达到60%左右。这三类商品联系到化工、钢铁、食品加工等产业链。比如原油，我们的吃喝拉撒睡、衣食住行无一不和原油紧密相关，原油的波动涉及千家万户的利益。它是最基础的大宗商品，所以美元和原油挂钩具有重要的政治、经济、外交、军事意义。

Three categories of commodities: crude oil, iron ore, and soybeans have a huge impact on China, and import dependence has reached about 60%. These three categories of commodities are linked to the industrial chain of chemical, steel, food processing. For example, crude oil, our eating and drinking, sleep, clothing, food and shelter are all closely related to crude oil, and the fluctuation of crude oil involves the interests of thousands of households. It is the most basic commodity, so the link between the US dollar and crude oil has important political, economic, diplomatic, and military significance.

从金融的角度来看，大宗商品怎么影响一国或他国经济？大宗商品价格稳定意义重大，期货市场对大宗商品价格稳定有不可替代的重要作用，这就是从金融的角度，因为它的交易、它的合约产生了杠杆。价格的稳定和一个国家的经济安全、政治安全密切相关，所以稳定价格需要工具，需要由市场来进行风险对冲，套期保值。

From a financial point of view, how do commodities affect a country or other country's economy? The stability of commodity prices is of great significance. The futures market has an irreplaceable important role in the stability of commodity prices. This is from a financial point of view, because its transactions and its contracts generate leverage. The stability of prices is closely related to a country's economic security and political security. Therefore, the need to stabilize prices requires tools and hedging by the market.

期货市场对于一个大国来讲非常必要，因为如果大的经济体不去建立这个市场，全世界都没有套期保值的场所。如果大国、大经济体的这么多企业不利用本土市场到其他市场去参与，就没有制定自己规则的机会。

The futures market is very necessary for a big country, because if the large economy does not build futures market, there is no place for hedging in the world. If so many companies in big countries and large economies do not use the local market to participate in other markets, there is no opportunity to formulate their own rules.

中国的原油期货、铁矿石期货已经上市并对境外投资者开放。美国、欧洲都有大宗商品期货市场，主要在美国，但是仅仅参加美国的原油期货市场和欧洲的期货市场是不够的，很多亚洲国家希望在亚洲这块地域上有自己的期货市场。中国作为亚洲地区最大的经济体，中国应该有担当，建立本土的期货市场，让有愿望到这个市场来进行风险管理的国家和企业都有机会。所以我们的对外开放就至关重要了。

China's crude oil futures and iron ore futures have been listed and are open to foreign investors. There are commodity futures markets in the United States and Europe, mainly in the United States, but it is not enough to participate in the US crude oil futures market and the European futures market. Many Asian countries hope to have their own futures market in this region of Asia. As the largest economy in Asia, China should have the responsibility to establish a local futures market and provide opportunities for countries and companies that have a desire to conduct risk management in this market. Therefore, our opening up to the outside world is crucial.

从企业层面来看，期货市场套期保值功能可以帮助企业增强竞争力。中国金融改革这么多年，更多是重视银行的融资、重视证券的融资、重视银行的风险管理和利用证券来进行风险管理，因为金融行业就是风险管理的行业。但真正用衍生品来进行风险管理长期以来没有排到适当的位置上去。

From the enterprise perspective, the hedging function of the futures market can help companies enhance their competitiveness. For many years, China's financial reform has paid more attention to bank financing, focusing on securities financing, attaching importance to bank risk management and using securities for risk management, because the financial industry is a risk management industry. But the real use of derivatives for risk management has not been put in place for a long time.

“一带一路”建设给大宗商品期货市场带来广阔的空间。“一带一路”相关国家和地区资源丰饶、人口众多，是全球最具增长活力和发展潜力的经济板块，在国际大宗商品市场上占有重要的地位。

“The Belt and Road” construction will bring a broad space to the commodity futures market. Related countries and regions of “The Belt and Road” are rich in resources and have a large population. They are the economic sector with the most growth and development potential in the world, and occupy an important position in the international commodity market.

在能源方面，“一带一路”相关国家和地区天然气储量在全球的占比为80%，原油储量占全球比重59%。矿产资源方面，铁矿石、铅锌矿等占全球比重20%到40%之间。农产品方面最高是天然橡胶，占到90%以上，玉米、大豆产量也很高。

In terms of energy, related countries and regions of“The Belt and Road” account for 80% of the world's natural gas reserves, and crude oil reserves account for 59% of the global total. In terms of mineral resources, iron ore, lead-zinc ore, etc. account for between 20% and 40% of the global total. The highest level of agricultural products is natural rubber, accounting for more than 90%, and corn and soybean production are also high.

在“一带一路”国家里头，重要的商品棕榈油、橡胶、原油占中国进口总量中的比例分别达到91%、78%和67%，这对我们和相关国家都非常重要。

In related countries and regions of “The Belt and Road”, important commodities such as palm oil, rubber and crude oil account for 91%, 78% and 67% of China's total imports respectively, which is very important to us and related countries.

大宗商品贸易涉及国家经济安全，国家经济安全除了保证政治、经济、外交、军事方面的作用以外，站在金融的角度，从期货市场来看就是大宗商品价格的稳定。建立中国本土的期货市场，提供市场交易机会，能够密切和“一带一路”相关国家的各种关系，从而促进合作共赢，共同迈向新一轮的经济全球化。

Commodity trade involves national economic security. In addition to ensuring political, economic, diplomatic, and military functions, national economic security stands from the perspective of finance, and from the perspective of futures markets, it is the stability of commodity prices. Establishing China's domestic futures market, providing market trading opportunities, and being able to closely cooperate with various countries of “The Belt and Road”, to promote cooperation and win-win, and jointly move toward a new round of economic globalization.