From May 28 to May 29, the 8th Shanghai Derivatives Market Forum was held in Shanghai. The theme of this forum is “The ** Market in Economic Recovery and Turbulence: Function Play and Risk Management”. Xi Zhiyong, assistant to the general manager of the Shanghai Stock Exchange, stated that 2010 was a year in which China's non-ferrous metals market made significant progress, mainly in the following areas: First, the stable listing of lead** was steadily carried out; Registration of foreign brands in the whole process; third, the official launch of the bonded delivery pilot project; and fourth, the development of non-ferrous metal industry services is undergoing a qualitative change.

The following is an account of Xi Zhiyong, assistant to the general manager of the Shanghai Stock Exchange, at the 8th Shanghai Derivatives Forum:

Good morning, distinguished guests, ladies and gentlemen, we all know that after 20 years of steady development in China's ** market, China has become the world's largest consumer of non-ferrous metals. The Chinese ** market has grown bigger and stronger. It is a critical period of transition from the expansion of quantity to the improvement of quality.

According to the statistics of the American Association of Industry and Commerce, the volume of merchandise market in China in 2010 reached 1.52 billion lots. This is unilateral. Our country likes to use bilateral calculations, accounting for 51% of the global merchandise volume, and it has been two years in a row. Global commodity ** market. The turnover of the Shanghai ** Exchange in 2010 was 620 million lots (unilateral), a year-on-year increase of 43%, ranking 11th on the global derivatives exchange. Non-ferrous metals are the most mature product series of the Shanghai Stock Exchange. In 2010, the volume of copper, aluminum and zinc was 100 million, 0.34 million and 290 million lots, respectively, and the turnover was 29.64 trillion yuan and 2.83 trillion yuan respectively. And 25.57 trillion yuan. If we change it to tons, the market size of copper and aluminum in the Shanghai** Exchange ranks second in the world, second only to the London Metal Exchange, and zinc is the first time to surpass the London Metal Exchange. Ranked first in the world.

The expansion of market size provides adequate liquidity for the nonferrous metals market, and it also promotes the overall deepening and improvement of the function of the nonferrous metal market economy. The market price of Shanghai Nonferrous Metals** has been stable, with positive interactions, and the correlation coefficients of copper, zinc, and spot prices are as high as 99.4% and 99%, respectively. The price of Shanghai copper in London and London has already shown a mutual two-way guiding relationship. The international influence of Shanghai non-ferrous metal market prices has increased significantly. 2010 was a year in which China’s non-ferrous metals market made significant progress, mainly in the following areas:

Lead ** was listed on a steady basis and steadily progressed. Lead ** was the first report and the first batch of approved new varieties of ** Exchange New Product Development and Listing Guidelines implemented by the China Securities Regulatory Commission in 2010. , institutional aspects of position limits, hedging management system of innovation, contract design rules based on the development of service industry, close to the industry and market needs and market-oriented means to promote industrial countries in product quality, technology and equipment, pollution control and other aspects The implementation of policies will promote technological progress, industrial upgrading, and elimination of backward production capacity. On the other hand, the lead ** market is operating steadily, with strong linkage between domestic and international prices. The correlation coefficient between lead and SMM is 98.3%, and the correlation coefficient between lead and LME is 94.2%; volatility is between the London Metal Exchange Lead. With Shanghai Nonferrous Metals Co., Ltd., it has effectively become a bridge linking domestic and international lead prices.

The second is to fully implement the registration process of overseas brands. In March 2007, the Shanghai ** Exchange amended the “Regulations for the Registration of Non-Ferrous Metals for the Delivery of Commodities”. It has now fully implemented the registration of the entire process of the foreign diplomatic cutting brand, and has unified the quality standards of domestic and foreign registered brands. From the aspects of production process, production management, quality inspection, delivery scope, and other aspects, the entire process registration process of overseas products from written materials review, sampling quality inspection, manufacturer trial, on-site production and management system inspection, etc. is realized. Following the registration of the first overseas copper delivery brand by the United States Freeport McMillan Company in January 2009, there are currently 27 registered overseas brands of copper, 1 aluminum, and many other brands are currently applying for approval. The registered overseas copper production exceeded 50% of foreign copper production.

Third, the bonded delivery pilot was formally launched. In 2010, bonded delivery was included in the Shanghai International Finance Center and the construction of shipping centers. Under the guidance of the China Securities Regulatory Commission and the Shanghai Municipal Government, bonded customs clearance work was obtained from the General Administration of Customs, the Ministry of Finance, and the state taxation. The support of the Directorate General has moved forward rapidly. Copper and aluminum as pilot species, Yangshan Port Bonded Area as a pilot area, launched a pilot bonded delivery. In March this year, the bonded delivery operation was officially launched and the production of the first batch of warehouse receipts was completed.

Fourth, the function of the development of non-ferrous metals** service industry is “quality change”. ** The market function has deeply penetrated into all aspects of production, operation and management activities such as enterprise raw material procurement, production and sales, cost control, inventory management, financial arrangement, production and operation decision, investment decision, merger and acquisition and corporate structure governance. The selection of brand registration standards and delivery targets has promoted technological progress and industrial upgrading in the non-ferrous metals industry, and has pushed the non-ferrous metals industry into the “brand and scale” era.

Combining the general rules of the development of the international derivatives market and the “emerging + transition” phase characteristics of China's ** market, this year's national ** supervision work conference clearly defined the basic ideas for the development of the Chinese ** market during the “Twelfth Five-Year Plan” period. Foundation, perfect mechanism, strengthen supervision, guard against risks, and serve the development of real economy. Our exchange will further promote the function of China's non-ferrous metals market to serve economic development in the following aspects.

One is taking the opportunity of the construction of Shanghai's international financial center to steadily push forward the internationalization of the market.

We will steadily promote the pilot process of the ** bonded settlement, explore the internationalization of the delivery network, further increase the influence of prices, and serve Shanghai's construction of an international financial center and the construction of a shipping center. In addition we have the full implementation of the whole process of registering foreign brands, "standard-setting" and "standard output" by further define the "Chinese standard" global position; at the same time improve domestic delivery warehouse layout and set up bonded delivery on the basis of active research Foreign diplomatic cut warehouse settings. Actively and steadily researched and promoted qualified overseas institutional investors to participate in the domestic market and optimize the structure of market investment.

The second step is to upgrade China's non-ferrous metal market in the pricing of international trade.

At present, the price of all ferrous metals in Shanghai ** trading has become the pricing basis for domestic trade activities, but most of the international trade is based on the prices of other exchanges, such as the London Stock Exchange. The pricing power is the core of the modern market and it determines the distribution of benefits in international economic trade. The upgrading of China's non-ferrous metals market in the international trade pricing discourse can transform Chinese factors into matching Chinese influence and enhance the international competitiveness of non-ferrous metals companies.

Third, we must also deepen our existing varieties and increase the intensity of new varieties.

Deeply carry out the functional evaluation of the existing varieties, continuously improve the trading, settlement, and delivery systems, make deep-seated existing varieties, and make a reasonable correlation between the authenticity, continuity, and authority of the varieties and spot prices. With the successful trial implementation of bonded delivery, in line with the strategic steps of the opening up of the capital market and the internationalization of the country, the development of crude oil ** was promoted; according to the stage characteristics of the ** market development, timely launches of the national economy and the people’s livelihood of silver, asphalt, etc. Commodity ** varieties, continuous improvement ** variety system; active research commodity index **, commodity options and other derivative products, for example, the development of non-ferrous metal ** index derivatives, to meet the market demand for non-basic metal companies.

The fourth is to deepen market training and increase the intensity of service industry economic development.

Establish a non-ferrous metal industry training base to build a learning and communication platform for non-ferrous metals companies and provide multi-level professional services. Encourage enterprises to carry out hedging operations prudently rationally support ** management system and personnel development enterprise; ** actively guide companies and industrial development, and to improve the level of service the company ** real economy; the promotion of enterprises to participate in hedging activities The improvement of the policy and regulatory environment.

This year is the beginning of the Twelfth Five-Year Plan period. The international and domestic situation is still complex and changeable. The stable operation, steady development and effective functioning of the non-ferrous metals market in China still require the joint efforts of all of you to serve the development of the industry. The goals of the national economic development service work together.