China to encourage listing of qualified futures firms to ensure high-quality development of the real economy
Published: Dec 05, 2021 11:08 PM
futures Photo: VCG

Photo: VCG

China will support leading futures companies to accelerate their development and encourage the listing and financing of qualified firms, to set up a number of derivatives and commodities services companies with strong capital and international competitiveness, Fang Xinghai, Vice Chairman of the China Securities Regulatory Commission, said on Sunday.

Fang made the remarks during the 17th China (Shenzhen) International Derivatives Forum, amid intensified global commodity price volatility, high inflation among developed economies, including the US and Germany, as well as a downward pressure on China's economy caused by the pandemic and supply chain disruptions.

Fang said that leading futures companies should make their due contribution to ensure the safety of China's energy and mineral products as the futures market eyes a positive development trend in 2021 with increasing capital gross.

At present, capital of China's futures market has exceed 1.2 trillion yuan ($188 billion), up 44.5 percent from the end of 2020. From January to November, the cumulative volume and turnover of futures options reached 6.919 billion lots and 536.46 trillion yuan ($ 8.4 billion), an increase of 28.61 percent and 40.27 percent respectively.

Fang said that China will deepen price influence on key commodities, including crude oil, PTA and iron ore, as well as attracting more foreign traders to participate in the domestic market to promote the quality and service of the futures industry with a higher level of openness.

According to Fang, China is expected to release a law on futures in 2022 to strengthen the foundation of rules related to futures and enhance the country's governance over the market.

China will continue to set up a diversified and open system for the futures derivatives market, especially on the innovation of carbon emission rights and new energy metals, Fang noted.

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