China futures market

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Futures markets in mainland China, initially deployed in 1990, have quickly established rapid growth as a result of transition to a market economy.

Contents

History

In October 1990, China Zhengzhou Grain Wholesale Market was established in Zhengzhou, Henan Province. [1] This is the first time that futures trading was introduced in China. Soon China's futures market started to boom. After more than 20 years development, China's commodities futures market has become one of the world's largest. [2] Up to the end of 2011, there are 29 exchange traded futures products in China, more than 10 commodities such as corn, wheat, copper, steel, etc. and the total trading volume exceeded 300 trillion. [3]

Futures exchanges in China

There are four futures exchanges in China. Zhengzhou Commodity Exchange (ZCE, established in 1993), Dalian Commodity Exchange (DCE, established in February, 1993), Shanghai Futures Exchange (SHFE, established in 1999), and China Financial Futures Exchange (CFFEX, established in Shanghai in September, 2006).

Opening up of China's futures market

Historically, Chinese government has imposed strict restrictions to keep the foreign capital out of its financial industry. In recent years, however, China introduced many financial opening policies and foreign capital has begun to infiltrate into domestic futures companies in China. ABN AMRO and Galaxy Futures Co. set up the first joint venture futures company in China. [4] JPMorgan Chase set up a joint venture futures company with Zhongshan Futures Co. Ltd. [5] Goldman Sachs also attempted to take shares in Qiankun Futures Co. Ltd. [6] Due to policy restrictions, the maximum foreign share of joint venture futures companies in China is 49%. However, for the futures websites in China, which are not under supervision of China Securities Regulatory Commission (CSRC), there is no restrictions regarding the percentage of shares foreign capital can hold.

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<span class="mw-page-title-main">Zhengzhou</span> Prefecture-level city in Henan, China

Zhengzhou, also spelt Zheng Zhou and alternatively romanized as Chengchow, is the capital and largest city of Henan Province in the central part of the People's Republic of China. Located in north-central Henan, it is one of the National Central Cities in China, the centre of Central Plains area, and serves as the political, economic, technological, and educational center of the province. The Zhengzhou metropolitan area is the core area of the Central Plains Economic Zone.

<span class="mw-page-title-main">Shenzhen Stock Exchange</span> Stock exchange in the Peoples Republic of China

The Shenzhen Stock Exchange is a stock exchange based in the city of Shenzhen, in the People's Republic of China. It is one of three stock exchanges operating independently in Mainland China, the others being the Beijing Stock Exchange and the Shanghai Stock Exchange. It is situated in the Futian district of Shenzhen.

The Stock Exchange Executive Council of the People's Republic of China was established to improve the efficiency of the securities market in mainland China.

<span class="mw-page-title-main">Shanghai Stock Exchange</span> Stock exchange in Shanghai, China

The Shanghai Stock Exchange (SSE) is a stock exchange based in the city of Shanghai, China. It is one of the three stock exchanges operating independently in mainland China, the others being the Beijing Stock Exchange and the Shenzhen Stock Exchange. The Shanghai Stock Exchange is the world's 3rd largest stock market by market capitalization. It is also Asia's biggest stock exchange. Unlike the Hong Kong Stock Exchange, the Shanghai Stock Exchange is still not entirely open to foreign investors and often affected by the decisions of the central government, due to capital account controls exercised by the Chinese mainland authorities.

<span class="mw-page-title-main">Bank of Beijing</span>

Bank of Beijing Co., Ltd. is an urban commercial bank based in Beijing, China. According to the bank, most of the revenue came from Beijing, despite that the banking group had more than half of the branches located outside the direct-controlled municipality. Beijing Municipal People's Government and the Netherlands-based multinational bank ING Bank were the major shareholders of the bank.

Zhengzhou Commodity Exchange, established in 1990, is a futures exchange in Zhengzhou, one of the four futures exchanges in China. The ZCE is under the vertical management of China Securities Regulatory Commission (CSRC).

The Dalian Commodity Exchange (DCE) is a Chinese futures exchange based in Dalian, Liaoning province, China. It is a non-profit, self-regulating and membership legal entity established on February 28, 1993.

The Shanghai Futures Exchange was formed from the amalgamation of the national level futures exchanges of China, the Shanghai Metal Exchange, Shanghai Foodstuffs Commodity Exchange, and the Shanghai Commodity Exchange in December 1999. It is a non-profit-seeking incorporated body regulated by the China Securities Regulatory Commission.

The China Financial Futures Exchange (CFFEX), is a futures exchange established in Shanghai on September 8, 2006—with the approval of the State Council and the authorization of China Securities Regulatory Commission (CSRC). It is a joint venture of the Zhengzhou Commodity Exchange, Shenzhen Stock Exchange and the Shanghai Futures Exchange.

China Shanghai Shenzhen 300 Stock Index Futures, often abbreviated to "Hushen 300 Index", designated by the commodity ticker symbol IF, is a stock market index futures contract traded in China Financial Futures Exchange (CFFEX). The notional value of one contract is RMB¥300 times the value of the Shanghai Shenzhen 300 Stock Index. It is known to be the first stock index futures contract in China.

Securities industry in China is an article on the securities industry in mainland China.

Foreign exchange regulation is a form of financial regulation specifically aimed at the Forex market that is decentralized and operates with no central exchange or clearing house. Due to its decentralized and global nature, the foreign exchange market has been more prone to foreign exchange fraud and has been less regulated than other financial markets.

China Chengxin Credit Rating Group was founded in Beijing on 8 October 1992 through the incorporation of China Chengxin Credit Management Co Ltd, which is the first nationwide credit rating company of China. Subsequently, it formed subsidiaries and established branches across China, including China Chengxin International Credit Rating Company Limited. The share-holder structure of the joint venture company was changed in 2006 when Moody's came in to take over the equity positions of Fitch and the supranational institution. The company is one of the few major credit rating agencies currently operating in China.

<span class="mw-page-title-main">Shanghai Free-Trade Zone</span> Free-Trade Zone in Shanghai, China

Shanghai Free-Trade Zone, officially China (Shanghai) Pilot Free-Trade Zone, is a free-trade zone in Shanghai, China. On 22 August 2013, the State Council approved the establishment of the zone. Officially launched on 29 September 2013 with the backing of Chinese Premier Li Keqiang, it is the first free-trade zone in mainland China and covers an area of 240.2 square kilometres (92.7 sq mi). Shanghai FTZ integrates four existing bonded zones in the district of Pudong—Waigaoqiao Free Trade Zone, Waigaoqiao Free Trade Logistics Park, Yangshan Free Trade Port Area and Pudong Airport Comprehensive Free Trade Zone.

CSC Financial Co., Ltd. trading as China Securities, is a Chinese investment bank and brokerage firm established by CITIC Securities and China Jianyin Investment in 2005 in a 60–40 ratio, as a successor of bankrupted China Securities Co., Ltd. (CSC). However, the firm now majority owned by Jianyin Investment's parent company Central Huijin Investment and an asset managing subsidiary of Beijing Municipal People's Government.

China Securities Finance Corp., Ltd. (CSF) is a Chinese state-owned financial services company founded in 2011. The company funded securities firm of China for their margin business as well as lending securities for short selling business.

<span class="mw-page-title-main">National Equities Exchange and Quotations</span>

The National Equities Exchange And Quotations (NEEQ) is a Chinese over-the-counter system for trading the shares of a public limited company that is not listed on either the Shenzhen or Shanghai stock exchanges. The NEEQ exchange was also nicknamed "The New Third Board" in China, as there were two old trading systems that the NEEQ replaced, STAQ and NET.

<span class="mw-page-title-main">Zhu Yuchen (business executive)</span>

Zhu Yuchen, also known as Eugene Zhu, is a Chinese business executive and one of the explorers and founders of the Chinese futures market. He is the former CEO of Dalian Commodity Exchange (DCE) and China Financial Futures Exchange (CFFEX). He is also the former Chairman of the China Futures Association (CFA).

<span class="mw-page-title-main">Jiang Xiaojuan</span> Chinese economist and politician

Jiang Xiaojuan is a Chinese economist and politician. She is a Professor and Dean of the School of Public Policy and Management of Tsinghua University, and a research professor at the Chinese Academy of Social Sciences (CASS). She is a Standing Committee Member of the National People's Congress (NPC) and Vice Chairperson of the NPC Social Construction Committee, taking charge of lawmaking, revision, enforcement, and supervision of social insurance, sports, protection of women's and children's rights and others. She was elected President of the Chinese Public Administration Society in 2019.

References

  1. "History of Zhengzhou Commodity Exchange" Archived 2012-05-10 at the Wayback Machine , ZCE
  2. 中研普华, "2012年中国期货市场规模位居世界前列", 中国行业研究网, 2012-8-20
  3. "Opportunities with the Opening of China’s Futures Market", Yahoo News, 2012-8-30
  4. "1st foreign-invested futures venture approved" Archived 2016-03-04 at the Wayback Machine , Sohu, 2005-12-07
  5. Wang Zhen, Garth Mortensen, "JP Morgan Gets Futures Foothold in China" Archived 2016-03-04 at the Wayback Machine , Caijing Magazine, 2008-1-31
  6. 饶红浩,"市场热议期货公司引外资", China Daily, 2012-5-16