Core Insights - The domestic futures market in China added 410,000 new clients in the first half of 2025, representing a 2.5% increase compared to the same period last year [1] - As of the end of June 2025, the total number of effective clients in the market reached 2.61 million, marking a historical high with a year-on-year growth of 12% [1] Client Structure Improvement - The number of institutional clients increased by 43% compared to the same period in 2022 [1] - The growth of overseas clients was even more pronounced, with a 63% increase compared to 2022 [1] - Traders from 39 countries or regions are currently participating in China's futures market, indicating a steady progress in the internationalization of the market [1] Market Influence and Development - The influence of China's futures market has been continuously rising, playing a unique role in serving national strategies and the real economy [1] - The number of futures account openings has maintained steady growth, and the effective client scale continues to expand, injecting new momentum into the stable and healthy development of the futures market [1]

Core Viewpoint - The article highlights the evolution of Zhejiang Merchants Futures from a regional service provider to a global comprehensive financial service provider, emphasizing its role in the internationalization of China's futures market and its commitment to serving the real economy [2][10]. Group 1: Historical Development - The Chinese futures market emerged during the reform and opening-up period, evolving from local trading to a significant player in the global market, particularly with the introduction of crude oil futures [2][3]. - Zhejiang Merchants Futures established its overseas subsidiary, Zhejiang International Financial Holdings, in 2015, marking a strategic move towards internationalization and responding to national policies for capital market openness [3][4]. Group 2: Business Expansion and Services - The company has expanded its service offerings from a single brokerage to a comprehensive suite that includes risk management, wealth management, and cross-border financing, thereby enhancing its international competitiveness [4][5]. - By obtaining various licenses, including those for securities and asset management, Zhejiang Merchants Futures has built a robust cross-border service network that supports clients in financing and risk management [4][5]. Group 3: Strategic Initiatives - The company aims to leverage its international platform to facilitate cross-border capital flows and enhance the participation of foreign investors in the Chinese futures market [6][9]. - Zhejiang Merchants Futures is actively involved in green finance initiatives, assisting local governments in issuing green bonds to promote sustainable economic development [7][11]. Group 4: Future Outlook - The company plans to further develop its cross-border business as a key growth driver, focusing on building collaborative platforms and enhancing resource integration [8][9]. - It aims to promote the internationalization of RMB-denominated futures products, attracting global enterprises to participate in the domestic market [9][10].

Core Viewpoint - The growth of Zhejiang Merchants Futures reflects the evolution of China's futures market from its inception to its current status as a comprehensive service provider, highlighting the integration of the Chinese economy into the global financial landscape [1][2]. Group 1: Internationalization and Strategic Development - Zhejiang Merchants Futures has established a cross-border service platform through its wholly-owned subsidiary in Hong Kong, facilitating access for foreign investors to the Chinese market and assisting domestic enterprises in global market risk management [3][4]. - The company has obtained various licenses, including those for futures trading and asset management, creating a robust cross-border service network that supports clients in financing and risk management [4][5]. - The internationalization strategy includes expanding from a single brokerage service to a comprehensive financial service model, integrating futures, securities, and asset management [4][5]. Group 2: Service to the Real Economy - The company has developed a one-stop cross-border financial service platform that includes securities trading, custody, bond underwriting, and financial financing, enhancing its ability to provide customized financial solutions to enterprises [5][6]. - By leveraging its experience in cross-border financial services, Zhejiang Merchants Futures supports domestic enterprises in managing price risks and accessing international capital markets [6][7]. Group 3: Green Finance and Sustainable Development - The company actively participates in the issuance of green bonds and sustainable development bonds, contributing to local economic growth and supporting the national dual carbon goals [7][8]. - Through its initiatives, Zhejiang Merchants Futures demonstrates its commitment to integrating financial services with sustainable development, reflecting the evolution of the futures industry in China [7][11]. Group 4: Future Outlook and Strategic Goals - Looking ahead, the company aims to enhance its cross-border operations and establish a collaborative platform that connects domestic and international markets, focusing on regulatory cooperation and efficient capital flow [9][10]. - The future strategy includes promoting the internationalization of RMB-denominated futures and attracting global enterprises to participate in the domestic market, thereby enhancing China's influence in the global commodity pricing system [10][11].

Core Viewpoint - The implementation of the Futures and Derivatives Law has significantly enhanced the stability, innovation, and international appeal of China's futures market over the past three years [1][2][3]. Group 1: Market Development - The Futures and Derivatives Law has filled a legal gap in China's futures and derivatives sector, providing essential institutional support for high-quality market development [2]. - A total of 50 new futures and options products have been launched in the past three years, bringing the total number of products in the futures market to 152 [2]. - The expansion of futures and options products has improved risk management tools for enterprises and contributed to the transformation and upgrading of industries [2][8]. Group 2: Internationalization - The law has established a solid legal foundation for the internationalization of the futures market, promoting broader and deeper international engagement [3]. - As of mid-2023, the number of tradable products for Qualified Foreign Institutional Investors (QFII) and Renminbi Qualified Foreign Institutional Investors (RQFII) has reached 91, with a significant increase in the number of new products [3]. - The active trading of internationalized products reflects global recognition and trust in China's futures market [4]. Group 3: Service to the Real Economy - The futures market has actively served the real economy, with a total of 2.54 million effective clients as of the first quarter of 2023, marking a 1.8% quarter-on-quarter increase [6]. - The "insurance + futures" projects have expanded significantly, providing risk protection for farmers and supporting local agricultural products [7]. - The diversification of the futures market has led to an increase in the proportion of industry clients' positions in key products, enhancing China's pricing power in global commodity trade [8].

Core Insights - The overall performance of the futures industry in China has shown significant improvement in the first half of the year, with a total revenue of 18.68 billion yuan and a net profit of 5.07 billion yuan, marking a 32% increase compared to the same period last year [1][2] Group 1: Financial Performance - In June, 150 futures companies achieved a total revenue of 3.43 billion yuan and a net profit of 990 million yuan, both showing increases compared to previous months [1] - Monthly net profit from January to June for the 150 futures companies was as follows: 563 million yuan, 499 million yuan, 1.42 billion yuan, 785 million yuan, 820 million yuan, and 990 million yuan, with most months showing year-on-year growth [2] Group 2: Market Dynamics - The increase in net profit is attributed to several factors: a recovery in market trading, rising demand for risk management from real enterprises, favorable trends in certain commodity and financial futures, and the introduction of new futures and options products [2][3] - The total trading volume in the national futures market reached 4.08 billion contracts and a trading value of 339.73 trillion yuan in the first half of the year, representing year-on-year growth of 17.82% and 20.68% respectively [4] Group 3: Future Outlook - The futures industry is expected to continue its positive trajectory in the second half of the year, with a focus on business transformation and internationalization, as well as the development of risk management services [4][5] - There is an anticipation of improved competition dynamics in the brokerage business, with ongoing product and service innovations expected to attract more capital into the futures market [4][5]

Core Viewpoint - The Shanghai Futures Exchange (SHFE) is seeking public opinion on a draft for the internationalization of its business rules, aiming to enhance its role in the global market and support China's high-level opening-up strategy [1] Group 1: Internationalization Objectives - The SHFE's internationalization initiative focuses on enhancing regulatory oversight, risk prevention, and promoting high-quality development of the futures market [1] - The plan aims to create a safe, standardized, transparent, open, and predictable institutional framework that aligns with the internationalization of the SHFE platform [1] Group 2: Key Areas of Reform - The internationalization reform will involve the formulation and revision of 34 secondary-level business rules [2] - Market access rules will define the conditions, rights, and obligations for foreign participants in domestic futures trading [2] - Trading rules will be updated to facilitate the full participation of foreign participants in the trading process [2] - Risk control measures will be refined to manage risks associated with foreign participants in domestic futures trading [2] - The settlement system will establish the Renminbi as the settlement currency and allow foreign exchange as a margin asset, with mandatory currency exchange provisions [2] - Delivery rules will be improved to manage non-deliverable positions and enhance the overall management of the futures trading process [2]

Core Insights - The Shanghai Futures Exchange has developed a prominent futures and options system for non-ferrous metals over the past 30 years, contributing to the rapid growth of China's non-ferrous metal industry and its integration with global markets [1][2]. Industry Development - The futures industry in China has evolved significantly from its inception in the early 1990s, transitioning from a nascent stage to a well-regulated and innovative market [3][4]. - The establishment of a market system tailored to China's unique characteristics has been crucial, incorporating features such as penetrating supervision and big data monitoring [4][6]. Market Evolution - The launch of the first standardized copper futures contract in 1993 marked a new pricing model and credit system for the industry, paving the way for corporate transformation [5][9]. - The introduction of various new products and platforms, such as the copper options and the standard warehouse receipt trading platform, has attracted more participants from the real economy [6][10]. Risk Management - The 2008 financial crisis highlighted the importance of risk management tools in the futures market, with the non-ferrous metal sector demonstrating relative stability compared to other industries [7][8]. - The regulatory framework and trading systems in place have proven effective in managing risks, as evidenced by the resilience of the domestic nickel futures market during the 2022 LME nickel incident [8][10]. Internationalization - The internationalization of the futures market has been a key focus, with the introduction of international copper futures and the participation of qualified foreign institutional investors (QFII) enhancing market depth and pricing influence [9][10]. - China's position as the largest producer and consumer of non-ferrous metals underpins the confidence in developing the futures market, with increasing participation from industry clients [11][12]. Strategic Integration - Companies are increasingly integrating futures into their strategic operations, utilizing them for comprehensive risk management and operational planning [12][13]. - The evolving service model of futures companies, including a diverse range of offerings, enhances their ability to support the real economy [13][14].

Group 1 - The domestic commodity futures market is set to introduce multiple new varieties this year to meet the diverse and refined risk management needs of enterprises, aiding them in hedging against risks [1] - The internationalization of China's futures market has been enhanced, with 16 new tradable futures and options products available for qualified foreign institutional investors (QFII and RQFII) starting June 20 [1] - As of now, the number of tradable products for qualified foreign investors in China's futures market has increased to 91 [1] Group 2 - New futures products are being accelerated, including cash-settled monthly average futures contracts for linear low-density polyethylene (LLDPE), polyvinyl chloride (PVC), and polypropylene (PP) announced by Dalian Commodity Exchange [2] - The Zhengzhou Commodity Exchange is preparing to launch futures and options contracts for propylene, which is the largest olefin product in China [2] - The Guangzhou Futures Exchange aims to develop a green futures trading platform, focusing on new energy and materials, with plans to introduce platinum and palladium by 2025 [2] Group 3 - The trading activity in China's futures market has remained robust, with a cumulative trading volume of 3.337 billion contracts and a trading value of 28.693 trillion yuan in the first five months of the year, reflecting year-on-year increases of 15.61% and 21.33% respectively [3]

Core Viewpoint - The listing of "Shanghai Natural Rubber Futures" on the Osaka Exchange marks a significant step in enhancing the international influence of Shanghai's pricing in the global rubber market [1][2]. Group 1: Market Development - Natural rubber is recognized as one of the four major industrial raw materials globally, alongside oil, steel, and coal [2]. - Since its launch in 1993, the Shanghai natural rubber futures market has seen substantial growth, becoming the world's leading market for natural rubber derivatives [2]. - In 2024, the cumulative trading volume of Shanghai natural rubber futures reached 108 million contracts, with a total trading value of 17.36 trillion yuan, reflecting year-on-year increases of 24.1% and 53.4%, respectively [2]. Group 2: International Collaboration - The collaboration with the Osaka Exchange is part of China's efforts to open its futures market to the world, providing more risk management options for global rubber industry players [2][4]. - The first contracts listed on the Osaka Exchange are for the months of September 2025, January 2026, and May 2026, with an initial trading volume of 322 contracts and an open interest of 152 contracts on the first day [3]. Group 3: Price Authorization - Price authorization has emerged as a key method for the Chinese futures market to expand internationally, allowing foreign exchanges to link to domestic futures prices [4][5]. - The Shanghai Futures Exchange previously authorized the settlement price for pulp futures to the Norwegian Pulp and Paper Exchange, marking the first direct application of Chinese futures prices in international financial markets [4]. - Experts believe that price authorization enhances the international dissemination and influence of Chinese futures prices, making "Chinese prices" a significant reference in global commodity trade [5].