Honorable CSRC Vice Chairman FANG Xinghai, Deputy Secretary General JIN Xingming, CNIA President

CHEN Quanxun, CASS Member LI Yang, and distinguished leaders and guests:

Good morning!

Today, leaders, experts and industry professionals from China and abroad are gathering here once again at the beautiful Huangpu riverside for the 14th Shanghai Derivatives Market Forum (SDMF). On behalf of Shanghai Futures Exchange (SHFE), I would like to express my sincere gratitude and welcome to all the guests!

With the support of CSRC, Shanghai Municipal Government and other stakeholders, Shanghai’s Derivatives Market Forum (SDMF), after 13 years of development and growth, has become an important platform for exchange, cooperation and joint development between the government and market participants, on both international and domestic level, for spot and futures markets. Over the past 13 years, for the purpose of serving the real economy and guiding the development of industries, China’s futures market has played an irreplaceable role in providing pricing services, propelling industry transition and safeguarding the development of enterprises, etc. Today, China’s futures market has become the largest trading market for commodity futures and options, with extensive experience in such areas as trading, clearing, delivery and regulation and a solid market foundation. Take the SHFE as an example, it currently has 14 listed futures products, forming an product range which includes four segments, i.e. nonferrous metals, ferrous metals, precious metals, and energy and chemicals, covering major basic industrial goods. In 2016, the SHFE’s annual trading volume reached 1.681 billion lots and annual turnover totaled RMB 84.98 trillion, ranking first by trading volume among commodity futures and options exchanges in the world. From January to April in 2017, the SHFE’s trading volume reached 371 million lots, with a turnover of RMB 26.04 trillion.

　For the CPC, China and its futures market, 2017 is destined to be an important year. First of all, the 19th CPC National Congress will be held later this year, which is an important congress to be convened at the decisive stage of building a moderately prosperous society in all respects and a milestone in the CPC’s and China’s political life. In this context, the futures market and exchanges must prevent the occurrence of systemic risks when carrying on all business activities. All stakeholders closely associated with the futures market are also expected to treasure and safeguard the current favorable conditions for market development and work together to promote the reform, stability and development of the futures market. Second, with the successful holding of the Belt and Road Summit and further acceleration of the development of the Belt and Road, the futures market should play its unique role in facilitating the orderly and free flow of economic factors, efficient resource allocation and market integration in the Belt and Road countries and, as far as its capabilities permit, provide more services for the Belt and Road Initiative. The SHFE’s efforts to list the crude oil futures and develop a benchmark price for trading of crude oil in the Asia-Pacific region are one important action to support the Belt and Road Initiative. As China’s first futures product open to international markets, the crude oil futures will contribute to the development and opening-up of China’s economic markets. Today, the SHFE and China Financial Futures Exchange (CFFEX) jointly host this forum of mutual consultation, development and sharing, themed “Progress in Stability, Growth and Open-up”, with a view to allow all distinguished guests from all circles to aggregate their wisdom and jointly explore pathways to achieve the steady operation, orderly opening-up and healthy development of China’s futures market, contributing to the prosperity and development of China’s capital markets.

According to the requirements of the CPC CSRC Committee, the SHFE has established the objective to “become a world-class exchange”. The SHFE will adhere to the keynote of seeking steady progress in its future development, plan for its future development from an international perspective and make rules based on international standards. In addition, the SHFE will “identify, compare with and reach benchmarks and set new benchmarks” by following the basic idea of utilizing local advantages for highlighting unique features and give full play to its political, resource and geographical advantages, in order to promote innovation in product, business, regulation and technology, etc., serve national strategies and guide industry development. Meanwhile, the SHFE will continuously study the spirit of the Third, Fourth, Fifth and Sixth Plenary Sessions of the 18th CPC Central Committee and the speeches of General Secretary XI Jinping, improve its work approach, build its image, increase its competence, embed political priorities in its business operation, and effectively promote the development of all businesses through strict governance of the CPC members and the SHFE, so as to welcome the successful convening of the 19th CPC National Congress with an outstanding performance.

As for this year’s work arrangements, the CPC SHFE Committee has identified the following nine priorities for 2017: (1) deepen the strict governance of the CPC members and the SHFE in all respects; (2) concentrate the SHFE’s resources to expedite the listing of the crude oil futures; (3) increase the frontline supervision efforts to ensure the stable operation of the market; (4) propel innovation in product, serve the needs of the real economy, expedite the listing of pulp futures and option and index futures, and propel the “futures + insurance” pilot programs of targeted poverty relief; (5) promote business innovation and improve industry and market service efficiency; (6) enhance R&D capabilities; (7) develop advanced technical systems; (8) improve governance structure to facilitate standardized and efficient operations; (9) value and care for the talents of the SHFE.

Distinguished leaders and guests:

　We are now in an important strategic period where opportunities and challenges and honors and missions coexist. The objective has been identified. You are expected to leverage this forum in the upcoming two days to conduct in-depth exchange and deepen mutual understanding, jointly contributing to the development and the performance of functions of China’s futures market. As the organizers of this forum, the SHFE and CFFEX will do our best to provide you with services during this forum.

　Lastly, I wish this forum a complete success. Thank you!