On August 12, as the fourth futures after crude oil, iron ore and PTA futures opening outside, No. 20 rubber futures were listed in INE.

By the end of August 12, the total volume of No. 20 rubber futures was 48.4k lots (unilateral, the same below), 4.779 billion yuan and 11.3k lots. Among them, the main contract NR2002 has a total turnover of 4.322 billion yuan, with a total of 438,800 lots; the closing price of the main contract NR2002 is 9820 yuan/ton, up 6.05% from the benchmark.

Fang Xinghai, vice chairman of CSRC, said at the listing ceremony that the introduction of foreign traders to No. 20 rubber futures market at beginning is a logical thing. This is of great significance for carrying out the "one belt and one road" initiative, enhancing the pricing influence of China in the global natural rubber market, and serving the upstream and downstream industries of the industrial chain.

On August 12, Chen Ming, chairman of Guangken Rubber Group, told Time Weekly at the ceremony of listing that the introduction of No. 20 rubber plays a very important role in building the pricing system of natural rubber and is also of great significance for upstream and downstream industry chain enterprises to go international.

Linkage with the existing Natural rubber Market

After six years of preparation, No.20 rubber futures finally "call a million times to start out".

This is the second "international platform, RMB valuation" model futures product launched in China after crude oil futures. It will introduce foreign traders to participate in the futures trading. It has positive significance in expanding the influence of China's natural rubber futures market.

"The listing of No. 20 rubber futures will strongly promote relevant industries to manage risks by using the futures market, and form an effective linkage with the existing natural rubber futures, natural rubber options and natural rubber standard warehouse receipts transactions in SHFE. It will help to build a multi-level market system of spot, futures and options interconnection and the interconnection of domestic and overseas markets, which will optimize the rubber market. It is beneficial to the resource allocation of rubber industry, enhancing the international influence of China rubber and serving the national "one belt and one road" initiative. Jiang Yan, chairman of the SHFE, said at the listing ceremony.

At the ceremony, Zheng Wenrong, the full-time vice-president of China Natural Rubber Association, said: "The natural rubber industry plays an important role in China's production, marketing and China's economic development. INE launched No. 20 rubber futures trading, which will inject new energy into the internationalization of China's natural rubber market.

"SHFE should strengthen the cultivation of domestic and foreign markets, make No. 20 rubber futures become the "vane" of pricing in the international rubber market as soon as possible, and promote the structural reform of the supply side of China's rubber industry. Fang Xinghai added.

It is noteworthy that Fang Xinghai emphasized five points on the following work of opening commodity futures markets to the outside world.

First, we will steadily expand the scope of specific commodities, study and promote more commodity futures and options as specific commodities, enhance the international influence of China's commodity prices, and provide price reference and risk management tools for cross-border operations of Chinese enterprises.

Second, explore a variety of open modes and explore diversified open paths.

Third, we should optimize the rules and regulations to further reduce the institutional transaction costs of foreign investors.

Fourth, enhance cross-border regulatory capacity, strengthen communication and cooperation with oversea regulatory agencies, and maintain market order under open conditions.

Fifth, we should be brave enough to participate in international competition, strengthen the promotion of international markets, and further enhance the participation of foreign investors.

Overseas customers are enthusiastic

Zheng Wenrong said at the listing ceremony that the current time is an important moment for China's natural rubber industry to achieve product upgrading, quality improvement and efficiency, and is a key period for the implementation of innovation-driven development.

Natural rubber industry plays an important role in China's production and marketing and economic development. China is not only the largest consumer and importer of natural rubber in the world, but also an important producer. Zheng Wenrong provided such a set of data at the scene: China's rubber planting area reached 17.6 million mu, ranking third in the world; annual output of more than 830k tons, ranking fourth in the world.

As the largest production and consumption of natural rubber, No. 20 rubber futures has great attraction for upstream and downstream enterprises to participate.

Yuan Song, assistant president of Sailun Group, said in an interview with the media at the ceremony that as the largest consumer of natural rubber in the world, the listing of No. 20 rubber futures provides a powerful means for stable production and development of production-oriented enterprises under the changing international situation.

No. 20 rubber futures got a "red start" on the first day of listing. The main contract NR2002 closed at 9820 yuan/ton, up 6.05% from the benchmark. From the trading information, 93 members and 362 customers participated in collective bidding on the first day of trading of No. 20 rubber futures, and 312 (unilateral) traded in the first batch.

Natural rubber industry chain enterprises and other domestic and foreign institutions participated in the first batch of transactions through collective bidding, including: Shanghai Longxiang International Trade Co., Ltd., a subsidiary of Hainan Natural Rubber Industry Group Co., Ltd., Yunnan Natural Rubber Industry Group Co., Ltd., Shanghai Yunxiang Industrial Co., Ltd., and Outai, a major producer of natural rubber products. Ltd., Ningbo Shanshan Petrochemical Co., Ltd.

In addition, Taihua Gum (Volkswagen) Co., Ltd., Yagi International (Singapore) Co., Ltd. and BANDS Risk Management Limited participated in the transaction through three overseas intermediaries, DBS, Shirui Financial Services Co., Ltd. and Panshi Financial Co., Ltd.

Li Shiqiang, general manager of Shanghai Shidong Trading Co., Ltd., told the media at the ceremony that there was a big increase on the first day, reflecting the industry's expectations for No. 20 rubber futures. Upstream and downstream enterprises can better use No. 20 rubber futures as hedging or risk management, which will play a very important role in the risk management of natural rubber as a whole and improving the global pricing power of Chinese rubber.