(Yicai Global) Sept. 2 -- Increased opening-up has strengthened China’s futures market, boosting its global influence and giving it more pricing power in international trade, experts said at the 2021 China Zhengzhou International Futures Forum, which started yesterday.  

Orderly operation of the futures market can reduce costs in production, circulation and consumption while also improving the overall effectiveness of the national economy, said Wang Yamei, deputy general manager of Zhengzhou Commodity Exchange.

Amid the impact of the Covid-19 pandemic, the ZCE has launched measures to reduce the cost of corporate transactions, ease the pressure on company funds and supply chains, and support firms to mitigate risks by participating in the futures market, Wang said, stressing that the market’s main role is to serve brick-and-mortar businesses and the real economy.

Baltic Exchange Chief Executive Mark Jackson said at the forum that the Covid-19 pandemic poses challenges to companies’ supply-chain risk management. The successful listing of China’s on-shore derivative contracts including iron ore, copper and crude oil has improved the prospects for the country’s launch of a freight derivatives market, Jackson said, adding that further opening-up will bring huge opportunities in the shipping and financial markets.

The global influence of China’s derivatives market is gradually improving due to its diversified development, said Cathy Li, senior director of business development at Chicago Mercantile Exchange. The Chinese market offers participants in the world’s derivative markets opportunities to optimize investment portfolios, enrich asset allocation and effectively implement risk management, she said. 

More and more overseas producers and traders will find hedging or profit strategies that are suitable for them as China’s futures market becomes more open and has more internationalized products, said Samuel Ho, CEO of Bursa Malaysia Derivatives Berhad. 

Katrin Otto, head of China Market Development at Deutsche Börse Group, noted that the Chinese market’s opening-up has also boosted internationalization of the yuan and increased the internationalized products available in China. 

The China Zhengzhou International Futures Forum is jointly sponsored by the Zhengzhou Municipal People’s Government, ZCE and CME.

Editors: Xu Wei, Tom Litting