Overview of China’s Futures Market
In 1988, China officially began preparing its own futures market. After 30 years of development, China futures market has gradually become a mature derivatives trading market with great international influence. By the end of 2023, a total of 131 futures and options products have been listed, including 79 commodity futures, 52 commodity option.
China Securities Regulatory Commission (CSRC)performs unified supervision and administration of the national securities and futures markets in accordance with laws, regulations and the authorization of the State Council of PRC.
Securities Regulatory Bureaus,the subsidiaries of CSRC by provincial location, are directly governed by CSRC aiming in assisting CSRC in regulating China Futures Market in unified and centralized manner.
China Futures Association (CFA),a national non-profit self-disciplinary organization of China futures industry, under the premise of centralized and unified supervision and management of the futures industry, implements futures industry self-discipline management.
China Futures Market Monitoring Center (CFMMC),a non-profit organization established by the state council and China securities regulatory commission. Its main functions are monitoring futures margin security and market operation, providing investor trading/settlement info lookup, governing futures investor protection fund, and integrating futures investors account opening, etc.
China Futures Exchangesprovides venues and facilities for centralized futures trading, organizes and supervise futures trading, and implements self-regulatory management. China now has five futures exchanges: Shanghai Futures Exchange, Zhengzhou Commodity Exchange, Dalian Commodity Exchange, China Financial Futures Exchange and Shanghai International Energy Exchange.
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CFFEXChina Financial Futures Exchange (“CFFEX”) is a demutualized exchange established with the approval of the State Council and CSRC and is dedicated to financial derivatives trading and settlement. On September 8, 2006, Shanghai Futures Exchange, Zhengzhou Commodity Exchange, Dalian Commodity Exchange, Shanghai Stock Exchange and Shenzhen Stock Exchange established CFFEX in Shanghai.
Top listed futures: CSI 300 Index Futures, CSI 500 Index Futures, SSE 50 Index Futures, 2-year Treasury Bond Futures, 5-year Treasury Bond Futures, and 10-year Treasury Bond Futures.
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DCEFounded on February 28, 1993, Dalian Commodity Exchange (“DCE”) is one of the four futures exchanges upon the approval of the State Council, and also the only futures exchange in Northeast China. After more than 20 years of standardized operation and steady development, DCE has become an important futures trading center in China and the world’s largest futures trading market of agricultural products, plastics, coal and iron ore.
Top listed futures: iron ore, coke, coking coal, linear low density polyethylene (LLDPE), polyvinyl chloride (PVC), No.1 soybean, No.2 soybean, soybean meal, soybean oil, palm oil, corn, and corn starch.
Listed option: soybean meal option
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SHFEShanghai Futures Exchange (“SHFE”) is a futures exchange under the uniform regulation of China Securities Regulatory Commission (“CSRC”). Currently, there are 16 futures products listed on SHFE, including copper, aluminum, zinc, lead, nickel, tin, gold, silver, steel rebar, steel wire rod, hot rolled coil, crude oil, fuel oil, bitumen, natural rubber, and paper pulp. The copper futures listed on SHFE has become one of the three most influential copper futures market in the world.
Top listed futures: copper, zinc, aluminum, nickel, natural rubber, gold, silver, steel rebar, and hot rolled coil.
Listed options: copper options.
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ZCEWith the approval of the State Council, Zhengzhou Commodity Exchange (“ZCE”) was established as China’s first pilot futures market in October 1990 and is directly governed by CSRC. ZCE currently lists a wide variety of products, covering crucial fields of national economy such as grain, cotton, oil, sugar, fruit, energy, chemical, textile, metallurgy, and construction materials.
Representative futures include: PTA, rapeseed meal, cotton, cotton yarn, white sugar, methanol, common wheat, strong gluten wheat, rapeseed, rapeseed oil, and thermal coal.
Listed option: white sugar option
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INERegistered on November 6, 2013 and approved by the China Securities Regulatory Commission, Shanghai International Energy Exchange Co., Ltd. (“INE”) as a subsidiary of the Shanghai Futures Exchange is an international exchange for global futures investors. In accordance with the Company Law, the Regulations on the Administration of Futures Trading and relevant rules and regulations prescribed by the CSRC, INE fulfills the futures market self - regulatory function. INE operates the listing, trading and settlement affairs of energy derivatives including crude oil, natural gas, petrochemicals, etc.
Listed futures: Crude oil
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GFEXGuangzhou Futures Exchange (“GFEX”) is the fifth exchange established with the approval of the State Council and CSRC. On April 19, 2021,
Shanghai Futures Exchange, Zhengzhou Commodity Exchange, Dalian Commodity Exchange,
China Financial Futures Exchange, Ping An Insurance (Group) Company of China, Ltd. Guangzhou Finance holdings, Guangdong the Pearl River Investment Holding Group Co., Ltd and Hong Kong Exchanges and Clearing Limited established GFEX in Guangzhou.
Being the first mixing ownership exchange, GFEX is established with an aim of strengthening the multilevel capital market and
developing the financial derivatives market.
Top listed futures: lithium, silicon metal
