What Is The Difference Between The Innovative Guangzhou Futures Exchange? Or Into A New Type Of Futures Test Field

On June 10, 1991, wating pivot, chairman of Shenzhen Nonferrous Metals Exchange, announced the establishment of the first futures exchange in New China, which later became today's CITIC futures.

Time is in a hurry. In the next 30 years, Guangdong has set up a futures exchange again.

On April 19, 2021, Guangzhou Futures Exchange (hereinafter referred to as "Guangzhou Futures Exchange") was officially opened. Recently, the CSRC news conference also pointed out that "it will explore the market construction of carbon futures and guide Guangzhou futures exchange to actively and steadily promote the research and development of carbon futures."

As an innovative futures exchange, Guangzhou futures exchange may take a completely different development path from the existing futures exchanges in the future.

The reporter of 21st century economic report learned that domestic futures exchanges are mainly divided into commodity futures and financial futures. The implementation of Guangzhou futures exchange provides imagination space for the third category of futures exchanges, and is expected to become an experimental field for innovative products such as carbon emission rights, index futures and even weather futures.

Key words: Dawan District, green development, ecological civilization

The development of China's futures market has experienced pains. From Shenzhen Nonferrous Metals Exchange to the end of 1993, there were more than 50 Futures exchanges in China.

After the barbaric growth, the state carried out two rectifications in 1993 and 1998, and finally retained three commodity futures exchanges, namely Zhengzhou Commodity Exchange, Dalian Commodity Exchange and Shanghai Futures Exchange, and the listed varieties decreased significantly.

Since then, with the promulgation of "Regulations on the administration of futures trading" and other policy guidelines, the domestic futures market began to enter the stage of standardized development after 2000.

By 2010, the above-mentioned three commodity futures trading had been formed in China, and a financial futures exchange (China Financial Futures Exchange Co., Ltd.) had been formed. The stock index futures, which was expected to be highly anticipated, was officially listed on April 16 of the same year.

After careful study, the existing futures exchanges have different emphases.

Among the three commodity exchanges, Dalian Commodity Exchange mainly deals with agricultural products, chemical industry and black raw materials. Shanghai Futures Exchange's product layout is mainly non-ferrous metals and steel, and it has the energy trading center of the previous period, which undertakes the international task. Zhengzhou Commodity Exchange is similar to Dalian Commodity Exchange, and the listed varieties involve many kinds of agricultural products.

In contrast, China's financial futures exchange was set up the latest time, mainly listed in financial futures, and basically completed the product layout of main stock index futures and treasury bond futures. At present, only the "Puzzle" of differential interest rate futures has not been completed.

The Canton Futures Institute, which landed this time, has a completely different positioning.

According to the statement of the CSRC on April 19, "the establishment of Guangzhou futures exchange is an important measure to implement the decision and deployment of the CPC Central Committee and the State Council, improve the multi-level capital market system, and serve the construction of Guangdong, Hong Kong and Macao Bay area and the national" belt and Road "construction. In the next step, the CSRC will guide the Guangzhou futures exchange to unswervingly implement the new development concept, base on serving the real economy and green development, adhere to the direction of marketization, legalization and internationalization, actively and steadily promote the construction of futures market under the guidance of product, system and technological innovation, so as to better serve China's ecological civilization construction and high-quality economic development. "

In this regard, a person close to the futures exchange pointed out that "in fact, other exchanges also have the functions of improving the multi-level capital market and serving the" belt and road "construction. In contrast, what Guangqi has unique is to serve the Great Bay area of Guangdong, Hong Kong and Macao, green development and ecological civilization construction. "

She pointed out that, for example, the construction of ecological civilization, the financial market is not closely related to this aspect, and in the future, with the listing of relevant varieties in Guangzhou futures, there will be a more powerful grasp.

It is also reported that Xu Jing, the leader of the products and finance group of Guangzhou futures exchange, also said that during the "14th five year plan" period, the Institute will focus on serving the direction of green development, research on futures varieties and related services such as carbon emission rights, electricity, green development related commodities, and promote the construction of a green and low-carbon economic system with a market-oriented mechanism.

In addition, we are also carrying out research on bulk commodities and commodity index varieties, and strive to list the first variety as soon as possible.

What needs to be pointed out is that due to the significant difference between the new products expected to be listed and the existing commodity futures and financial futures, as well as the positioning of the SGRI in the innovative futures exchange, it undertakes the task of product innovation. In the future, the trading, risk control and delivery system of the exchange will also change significantly.

Taking the delivery mode as an example, commodity futures are delivered in kind, while financial futures are mainly delivered in cash. As the trading target of carbon emission futures may be the indicator of carbon emission, the delivered products are a kind of right. Does this also need to be adjusted in the delivery system of the broad term?

It is also based on this possibility that Hu Zheng, as the first group of management in the preparation for the establishment of China Financial Futures Exchange, was promoted to the chairman of the CFFE in 2017, and became the leader of the preparatory group of Guangzhou futures exchange.

After accumulating the experience in the preparation for the establishment of China Financial Futures Exchange and the launch of the first stock index futures product, Hu Zheng has obviously become the most suitable leader at the present stage.

Experimental field of innovative futures varieties

From commodity futures to financial futures, to relatively "alternative" carbon emission futures, weather futures and shipping index futures, brand new products will come out in the global futures market almost every few decades.

Guangzhou futures exchange is expected to become the domestic carrier of the above innovative futures products in the future.

Jing Chuan, an expert in the futures industry, began to enter the futures market in 1993 and has witnessed and experienced almost all the history of the domestic futures market.

In his opinion, in the context of carbon neutrality, carbon emission rights futures will become an important foothold of the SFRI, and at the same time, it is possible that similar derivatives such as medium and long-term weather futures will settle in the SEHK.

For example, overseas markets have formed a matching relationship with various agricultural products futures through weather futures, and shipping index futures are closely related to large quantities of raw materials such as iron ore and crude oil.

"Guangzhou futures exchange, on the one hand, undertakes the task of product innovation, on the other hand, it may play a role of picking up and filling up deficiencies in the domestic futures market." Jingchuan said.

According to the southern finance and economics full media reporter on April 19, the preparatory group of Guangzhou futures exchange currently focuses on the listed products including commodity index futures and carbon emission right futures.

From the perspective of variety prospects, the introduction of commodity index futures will fill the gap in this field in China.

The 21st century economic report reporter learned that at present, domestic commodity index products are relatively scarce. From the perspective of the industry, the commonly used indexes are CRB index and Wenhua commodity index. The former is established by the US Commodity Survey Bureau, while the latter is produced by the domestic futures market supplier Wenhua finance and Economics.

Up to now, the domestic market still lacks an authoritative index product released by the government to reflect the overall prosperity of the commodity market.

In contrast, the attention and market voice of carbon emission right futures are higher.

Recently, China Securities Regulatory Commission (CSRC) has also pointed out that, in order to promote the development of green finance and explore the construction of carbon futures market, Guangzhou futures exchange will be guided to actively and steadily promote the research and development of carbon futures.

In fact, carbon emission futures are not a new product, and have been launched in overseas markets.

In April 2005, the European Union carbon market launched carbon futures products linked to carbon emission quotas; in August 2008, the Climate Futures Exchange affiliated to the Chicago Climate Exchange began trading carbon futures. At present, a number of exchanges around the world have listed related products.

The launch of such products, in essence, is to stimulate enterprises to reduce emissions through economic means. After "materializing" the carbon emission right, the enterprise with better emission reduction can transfer the rich emission index, and the enterprise with poor emission reduction can purchase the emission index through public bidding.

If the total amount of emission indicators issued to enterprises decreases, the overall emission reduction effect can be achieved.

"It is not just a few thousand enterprises in China that need to reduce carbon and implement carbon neutrality goals. All enterprises need to achieve carbon neutrality in the next 30 years. What will lead their investment decisions in the next five or ten years? One of them is the carbon price, which should have a curve of five to ten years, which requires some derivative instruments, including carbon futures, to provide such a price. " Ma Jun, director of the green finance professional committee of the Chinese Financial Association, pointed out in his reply to the questions raised by the 21st century economic report on April 20.

It is obviously imperative to launch carbon related futures products.

However, from the historical experience, the introduction of a new variety generally requires a more mature spot market as the basis, while the national carbon emission trading market is expected to start operation before the end of June this year.

In addition, the R & D and listing process of new products is not achieved overnight. China Financial Futures Exchange was launched in September 2006, and only in April 2010 did products officially go on the market, which lasted nearly four years.

On the positive side, driven by the goal of "striving to achieve a carbon peak by 2030", the listing pace of China's version of carbon futures may be accelerated.