Core Viewpoint - The introduction of RMB foreign exchange futures is a significant step in enhancing the risk management tools available for enterprises, particularly small and medium-sized enterprises (SMEs), in response to the increasing demand for effective currency risk management as China's economic global standing rises [1][3][9]. Group 1: Policy Announcement - On June 18, during the 2025 Lujiazui Forum, the Governor of the People's Bank of China, Pan Gongsheng, announced eight important financial policies, including the research and promotion of RMB foreign exchange futures trading [1]. - The policy aims to improve the foreign exchange market product series, facilitating better management of exchange rate risks for financial institutions and foreign trade enterprises [1][2]. Group 2: Demand for Currency Risk Management - There has been a significant increase in the demand for currency risk hedging among SMEs, with a reported 12% increase in the number of A-share listed companies announcing hedging strategies from January to May 2025 compared to the same period in 2024 [4][8]. - The need for diversified and precise RMB exchange rate risk management tools has become increasingly urgent as domestic enterprises face heightened exchange rate risks [4][5]. Group 3: Limitations of Current Tools - Current foreign exchange derivative tools available to domestic enterprises, such as forward contracts and options, have limitations including high scale thresholds, credit requirements, and low flexibility [7]. - SMEs particularly require more flexible, cost-effective foreign exchange risk management products, which RMB foreign exchange futures could address effectively [7][9]. Group 4: Impact on RMB Internationalization - The launch of RMB foreign exchange futures is expected to support the internationalization of the RMB, facilitating capital flow and providing a compliant investment channel to mitigate risks associated with illegal foreign exchange margin trading [9][10]. - The current global average daily trading volume of RMB accounts for only 2.4%, indicating a critical need for effective hedging tools to enhance the RMB's position in international markets [9]. Group 5: Opportunities for Financial Institutions - The policy breakthrough presents strategic opportunities for the transformation and capability enhancement of financial institutions, allowing them to better serve the real economy and integrate into supply chain finance [12][13]. - The introduction of RMB foreign exchange futures is seen as a catalyst for the growth of the futures industry, encouraging firms to strengthen their capabilities and become comprehensive risk managers with international influence [13].

Core Viewpoint - The People's Bank of China and the China Securities Regulatory Commission are advancing the research and promotion of RMB foreign exchange futures trading as a significant step in the 2025 financial opening strategy [1][6] Group 1: Policy Framework - The revised regulations for 2024 clarify that qualified foreign investors can participate in foreign exchange futures trading through dedicated accounts, optimizing cross-border fund transfer processes [2] - Initial futures contracts may be based on offshore RMB (CNH) with cash settlement and daily settlement systems, covering contract durations from 1 month to 1 year [2] - The introduction of foreign exchange futures will fill the gap in long-term derivative products in the domestic market, where trading volume for contracts over one year is only 0.3% of the total market [2] Group 2: Market Dynamics - The launch of RMB foreign exchange futures coincides with the inclusion of foreign institutions from Africa, the Middle East, Central Asia, and Singapore in the RMB Cross-Border Payment System (CIPS) [3] - Futures prices can provide real-time market expectations, offering the central bank more precise policy references [3] - The opening of the futures market is expected to enhance the attractiveness of RMB assets, with foreign institutions holding RMB bonds reaching 4.8 trillion yuan by 2024 [4] Group 3: Risk Management - The futures market allows participants to hedge risks through reverse operations, providing a mechanism for companies to manage currency fluctuations effectively [5] - For example, a Chinese trading company can use RMB foreign exchange futures to hedge against potential depreciation of the RMB when making payments in USD [5] Group 4: Future Outlook - The introduction of RMB foreign exchange futures is anticipated to be a crucial bridge connecting domestic and international financial markets, with expectations for pilot preparations to be completed by 2025 [6]

Core Viewpoint - The introduction of RMB foreign exchange futures is a significant step in enhancing the risk management tools available for enterprises, particularly small and medium-sized enterprises (SMEs), in response to the increasing demand for effective currency risk management solutions [1][2][3]. Group 1: Policy Announcement and Market Demand - On June 18, during the 2025 Lujiazui Forum, the People's Bank of China announced eight important financial policies, including the research and promotion of RMB foreign exchange futures trading [1]. - The demand for RMB foreign exchange futures has been long-awaited by academia and businesses as a tool for managing exchange rate risks, especially for SMEs engaged in foreign trade [2]. - The rapid development of China's economy and the increasing internationalization of the RMB have led to a significant rise in the demand for currency risk management tools [3]. Group 2: Growth in Hedging Needs - The hedging demand among domestic enterprises has surged, with a notable increase in the number of A-share listed companies issuing hedging-related announcements, rising by 12% year-on-year in the first five months of 2025 [4]. - Among these, 1,084 companies reported on currency hedging, indicating that currency risk remains the primary concern for businesses [4][6]. Group 3: Limitations of Current Tools - Current foreign exchange derivative tools available to domestic enterprises are limited, with existing products failing to meet the increasingly complex needs of businesses [5]. - SMEs particularly require more flexible, cost-effective foreign exchange risk management products, which RMB foreign exchange futures could provide due to their standardized contracts and lower barriers to entry [5]. Group 4: Impact on RMB Internationalization - The launch of RMB foreign exchange futures is expected to significantly impact the internationalization of the RMB, providing a compliant investment channel and alleviating pressure on foreign exchange reserves [7]. - Currently, only 2.4% of global foreign exchange transactions involve the RMB, highlighting the need for effective hedging tools to enhance its international standing [7]. Group 5: Opportunities for the Futures Industry - The introduction of RMB foreign exchange futures presents a strategic opportunity for the futures industry to transform and enhance its capabilities [9]. - This new product will reshape the product matrix and service models of futures institutions, allowing them to better integrate into the supply chain finance of enterprises [9][10]. Group 6: Recommendations for Sustainable Development - For the successful launch and sustainable development of RMB foreign exchange futures, collaboration among regulatory bodies, market institutions, and investors is essential [11]. - Key areas for improvement include enhancing trading rules, increasing market participants' understanding of foreign exchange derivatives, and upgrading trading infrastructure [11].

Core Viewpoint - The introduction of RMB foreign exchange futures is a significant step towards enhancing currency risk management for domestic enterprises, particularly small and medium-sized enterprises (SMEs), amid increasing demand for diversified and precise risk management tools [1][2][3]. Group 1: Policy Announcement and Market Demand - On June 18, during the 2025 Lujiazui Forum, the Governor of the People's Bank of China, Pan Gongsheng, announced eight important financial policies, including the promotion of RMB foreign exchange futures trading [1]. - The demand for RMB foreign exchange futures has been long-awaited by the financial and business sectors as a tool for managing exchange rate risks [1]. - The increasing complexity of exchange rate risks faced by domestic enterprises has led to an exponential growth in their hedging needs [1][2]. Group 2: Current Hedging Tools and Limitations - In the first five months of 2025, 1,295 A-share listed companies in the real economy issued announcements related to hedging, a 12% increase from the same period in 2024, with exchange rate risk being the primary concern [2]. - Current domestic foreign exchange derivative tools are limited, and existing hedging products do not fully meet the diverse needs of enterprises [2]. - SMEs particularly require more flexible, cost-effective foreign exchange risk management products, which RMB foreign exchange futures can provide due to their standardized contracts and lower barriers to entry [2]. Group 3: Impact on RMB Internationalization and Financial Institutions - The launch of RMB foreign exchange futures is expected to support RMB internationalization and facilitate capital flow, while also providing a compliant investment channel to mitigate risks associated with illegal foreign exchange margin trading [3]. - According to BIS statistics, only 2.4% of global foreign exchange transactions involve RMB, highlighting the lack of hedging tools as a key constraint [3]. - The introduction of RMB foreign exchange futures can offer strategic opportunities for financial institutions to transform their business models and enhance their capabilities [3][4]. Group 4: Business Innovation and Risk Management - The introduction of foreign exchange futures will reshape the product matrix and service models of futures operating institutions, promoting diversification and specialization [4]. - By integrating futures with the real economy, futures institutions can provide precise exchange rate risk management solutions to enterprises [4]. - Financial institutions can utilize foreign exchange futures to optimize asset-liability management, reduce exchange rate risk exposure, and improve risk management efficiency [4].

Core Viewpoint - The People's Bank of China announced eight policy measures aimed at enhancing Shanghai's status as a global financial center, focusing on the internationalization of the Renminbi and financial innovation [2]. Group 1: Policy Measures - Establishment of an interbank market trading report database [2] - Creation of a digital Renminbi international operation center [2] - Formation of a personal credit institution [2] - Launch of offshore trade finance service reform pilot in Shanghai's Lingang New Area [2] - Development of offshore bonds in the free trade zone [2] - Optimization of free trade account functions [2] - Innovation of structural monetary policy tools in Shanghai [2] - Collaboration with the China Securities Regulatory Commission to promote Renminbi foreign exchange futures trading [2][3] Group 2: Implications for Renminbi Internationalization - The introduction of Renminbi foreign exchange futures is a significant step towards the internationalization of the Renminbi, enhancing its global pricing power and reducing foreign market influence [3][5]. - The current lack of foreign exchange products in China's futures market highlights the need for this development, as other markets like Singapore and Hong Kong have already established active trading in Renminbi futures [3][5]. Group 3: Market Demand and Supply - Increased volatility in the Renminbi's exchange rate has heightened the demand for effective risk management tools, particularly among small and medium-sized enterprises [4]. - Existing tools for managing exchange rate risk are limited and often costly, making the introduction of standardized and transparent foreign exchange futures particularly beneficial [4]. Group 4: Benefits for Enterprises - Renminbi foreign exchange futures will help enterprises manage exchange rate risks by locking in costs and providing a comprehensive product chain for different risk preferences [5]. - The new tools will lower the barriers for small and medium-sized enterprises to participate in the foreign exchange derivatives market, which has previously favored larger companies [5]. Group 5: Future Considerations - The policy must balance marketization with risk prevention to avoid exacerbating exchange rate volatility through speculative trading [6]. - The introduction of these futures is expected to enhance the competitiveness of Chinese foreign trade enterprises and provide a more robust infrastructure for exchange rate risk management in the context of the Belt and Road Initiative [6].

Core Viewpoint - The People's Bank of China announced the promotion of RMB foreign exchange futures trading, indicating the maturity of the domestic market for this financial product, driven by the increasing demand for currency risk management tools due to the internationalization of the RMB and rising cross-border capital flows [1][2]. Group 1: Financial Policy and Market Development - The introduction of RMB foreign exchange futures is expected to fill the gap in the domestic market, enhancing the structure and depth of the foreign exchange market [2][3]. - The current foreign exchange derivatives market in China includes forward contracts, swaps, currency swaps, and options, which have aligned with international standards, but the addition of futures will mark a new phase in market development [2][4]. Group 2: Risk Management and Corporate Needs - There is a significant increase in the demand for currency risk hedging among enterprises, particularly small and medium-sized enterprises, highlighting the urgent need for precise risk management tools [2][3]. - Exchange rate fluctuations pose a core external variable affecting the operational performance of domestic enterprises, especially in cross-border trade, where time lags between contract signing and payment expose firms to exchange rate risks [3][4]. Group 3: Impact on Financial Market Competitiveness - The introduction of standardized, centrally traded derivatives like foreign exchange futures is expected to enhance the international competitiveness of China's foreign exchange market, attracting more international investors and increasing market liquidity [4]. - The development of a comprehensive ecosystem for currency risk management involving foreign trade enterprises, financial institutions, and futures operating institutions will accelerate as the foreign exchange futures market matures [4].

Group 1 - The number of A-share listed companies participating in hedging activities continues to grow, with a significant increase in announcements related to hedging in May 2025 compared to the same period in 2024 [1] - In May 2025, 50 A-share listed companies in the real economy issued 78 announcements regarding hedging, up from 26 companies in May 2024, indicating a strong demand for risk management tools [1] - Year-to-date, 1,295 A-share listed companies have issued hedging-related announcements, an increase of 142 companies or 12% compared to the same period in 2024, with exchange rate risk being the primary concern [1] Group 2 - The People's Bank of China announced eight major financial opening measures, including the promotion of RMB foreign exchange futures trading to enhance risk management for financial institutions and foreign trade enterprises [1] - The China Securities Regulatory Commission plans to accelerate the implementation of key measures for capital market opening by 2025, including expanding the range of products available for foreign investment [1] - The establishment of the RMB foreign exchange futures market is expected to deepen the onshore market and provide a new option for the People's Bank of China in foreign exchange market regulation [2] Group 3 - The introduction of foreign exchange futures is anticipated to diversify trading participants and better serve the risk management needs of the real economy [2] - The China Financial Futures Exchange currently offers various futures and options products in equity and interest rate derivatives, and the addition of foreign exchange futures will fill a gap in the market [2]

Group 1 - The Agricultural Bank of China Zhongshan Branch held a foreign exchange seminar aimed at enhancing cross-border financial services for over 100 foreign trade enterprises in Zhongshan, Guangdong [1] - The seminar featured experts from the State Administration of Foreign Exchange and the Agricultural Bank, who discussed foreign exchange policies, trade facilitation measures, and exchange rate risk management [1] - The State Administration of Foreign Exchange emphasized the importance of establishing a "substantive compliance" concept for enterprises to optimize internal processes and fully leverage policy benefits [1] Group 2 - The Agricultural Bank of China Macau Branch highlighted the investment opportunities and financial service advantages in the Macau Special Administrative Region, responding to the increasing overseas expansion needs of Zhongshan enterprises [2] - The Zhongshan Branch has provided over $3.7 billion in cross-border settlement services this year, with a year-on-year increase of 225.81% in foreign exchange hedging scale and an 18.74% increase in hedging ratio [2] - The branch aims to continue innovating financial products and services to support Zhongshan's open economy and stabilize foreign trade and investment [2]

Core Viewpoint - The event focused on the importance of exchange rate risk management for Chinese enterprises in the context of evolving global economic dynamics, emphasizing the need for effective hedging strategies to mitigate risks [1][4][7]. Group 1: Event Overview - The event titled "Exchange Rate Risk Management Seminar under New Circumstances" was held on May 30 at the Bund, attended by nearly 30 representatives from various industries including manufacturing, trade, and technology [1]. - Key speakers included officials from the State Administration of Foreign Exchange and senior executives from Shanghai Bank and the Foreign Exchange Trading Center [1][4]. Group 2: Key Presentations - Shanghai Bank's Business Director highlighted the significance of adopting a "neutral exchange rate risk" approach and shared the bank's achievements in supporting enterprises' hedging needs [4]. - The General Manager of the Foreign Exchange Trading Center discussed recent accomplishments in the interbank foreign exchange market and future initiatives to enhance services for corporate clients [5]. - The Director of the International Balance of Payments Department emphasized the principles and strategies for managing exchange rate risks, particularly in the context of dual currency fluctuations [7]. Group 3: Expert Insights - An invited expert from CITIC Bank analyzed the impact of Trump's tariff policies on international order and suggested that the renminbi would demonstrate resilience amid a shift towards diversified global asset allocation [9]. - The product manager from the Foreign Exchange Trading Center presented the functionalities and applications of the corporate foreign exchange trading service platform [11]. Group 4: Future Outlook - The event facilitated in-depth discussions on the mechanisms of exchange rate fluctuations affecting cross-border operations and the selection of hedging tools in complex market environments [13]. - The future development of exchange rate hedging services for Chinese enterprises is expected to be robust, supported by the People's Bank of China, the State Administration of Foreign Exchange, and the Foreign Exchange Trading Center [13].

Group 1: Product Development and Market Strategy - The company is actively developing mini-games for the domestic market and focusing on SLG games for the overseas market, with titles like "Code S" and "Code H" in progress [1] - Currently launched mini-games have experienced a decline in revenue compared to their initial launch due to product lifecycle factors [2] - The company plans to adjust the development and promotion pace of mini-games based on testing data and market conditions [2] Group 2: Financial Performance and Cost Factors - The gross margin for mobile terminal games decreased by 1.60% in 2024, influenced by the structural adjustment of game product types [1] - The company is implementing strategies to maintain market share and brand awareness through new game launches and promotions [2] Group 3: Talent Acquisition and Resource Allocation - The company aims to attract and retain high-end talent through reasonable incentives, empowerment, and development opportunities [2] - The current focus is on mini-games and SLG games, with potential research and small-scale trials for new game categories [2] Group 4: Currency Risk Management - The company acknowledges that a decline in the US dollar could impact profits due to the significant contribution of overseas business to revenue [2] - A currency risk management strategy is in place to monitor global exchange rate fluctuations [2] Group 5: Disclosure of Information - The investor relations activity did not involve any undisclosed significant information [3]