Core Viewpoint - The Shanghai Municipal Government has released an action plan to enhance the linkage between futures and spot markets for non-ferrous metals, aiming to improve the effectiveness of services to the real economy and strengthen risk management capabilities among enterprises in the current volatile market environment [1] Group 1: Policy and Market Trends - The action plan emphasizes the deep participation of non-ferrous metal application enterprises, such as those in automotive manufacturing, construction, and home appliance production, in futures and OTC derivatives markets to hedge against price volatility [1] - The China Futures Association forecasts that by 2025, the cumulative trading volume of the national futures market will reach 9.074 billion contracts, with a cumulative transaction value of 76.625 trillion yuan, reflecting a year-on-year growth of 17.4% and 23.74% respectively [1] - The commodity options market is also expected to see significant growth, with a projected trading volume of 1.722 billion contracts and a transaction value of 153 billion yuan in 2025, representing year-on-year increases of 60.93% and 94.6% [1] Group 2: Risk Management and Tools - As of December 2025, there are 164 listed varieties in China's futures and options market, with 18 new additions during the year, indicating a growing demand for risk management tools [2] - The use of options is becoming more prevalent, with enterprises shifting from single futures hedging to a "futures + options" combination for risk management [2] - The nominal principal of OTC derivatives held by risk management subsidiaries reached 380.86 billion yuan by December 31, 2025, marking a new high for the year, with commodity OTC derivatives accounting for 24.698 billion yuan, a 16.4% increase since April [2] Group 3: Strategic Importance of Risk Management - Effective risk management is viewed as a "safety net" for commodity traders to withstand market fluctuations, helping to stabilize operations and optimize costs [3] - Companies can enhance their competitive edge by using futures prices as a pricing benchmark for spot trades, improving procurement and sales strategies, and increasing capital efficiency through margin trading [3] - Strong risk management capabilities are essential for companies to participate effectively in the global commodity market and seize international opportunities, with those excelling in risk management often outperforming competitors [3]

The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission take no responsibility for the contents of this Application Proof, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this Application Proof. Application Proof of Nanhua Futures Co., Ltd. 南華期貨股份有限公司 (A joint stock company incorporated in the People's Republic of China with limi ...

Core Viewpoint - The training event aims to enhance the understanding and application of options in the futures and derivatives market, thereby supporting the development of the real economy in Hebei province [1] Group 1: Training Event Details - The training was held on October 21 in Shijiazhuang, organized by Hebei Securities Regulatory Bureau in collaboration with Zhengzhou Commodity Exchange [1] - Over 180 participants from local securities and futures institutions attended the training [1] - The training featured experts from Zhengzhou Commodity Exchange, Yong'an Futures, CITIC Futures, Zheshang Futures, and Galaxy Futures, along with industry representatives from Zhengda Glass [1] Group 2: Training Content - The training covered a wide range of topics including basic theory, practical applications, market operation conditions, trading rules, options functions, trading strategies, common analysis indicators, OTC options, and risk management for enterprises [1] - The objective is to improve the capabilities of industry professionals in serving industrial clients and to better utilize the functions of the futures and derivatives market [1] Group 3: Future Plans - The Hebei Securities Regulatory Bureau plans to strengthen cooperation with futures exchanges like Zhengzhou Commodity Exchange and continue organizing various activities to build a robust talent pool in the industry [1] - There will be ongoing efforts in policy promotion, development cultivation, and talent reserve work to facilitate high-quality development of the futures market and enhance its service to the real economy [1]

Core Viewpoint - The development of China's futures and derivatives market is undergoing significant changes due to new challenges and opportunities, with a focus on high-quality development in the context of modern Chinese economic strategies [1][2] Group 1: Market Development Trends - Since 2010, China's futures and derivatives market has transitioned from a single closed system to a diversified and open market [1] - The domestic futures market has successfully withstood major risks, achieving over twenty years of stable operation [1] - The market's functions and social influence have improved, establishing initial price influence and promoting the transformation of domestic spot trading methods [1] Group 2: Challenges and Opportunities - The market faces unprecedented changes, including technological transformations, the energy revolution, and the rapid development of digital currencies and virtual asset trading [1][2] - The global derivatives market is experiencing a shift, with trading increasingly concentrating in the Asia-Pacific region, alongside new trends in financial returns, carbon emissions, and digital asset trading [1] Group 3: Domestic Market Perspective - Despite a generally positive economic foundation, challenges remain, and vigilance against uncertainties is necessary [2] - The new tasks for the futures and derivatives market include enhancing market functions, which are closely linked to market structure [2] - There is significant potential for broad market participation, international influence, and the development of diverse derivative products and services [2]