Honorable CSRC Vice Chairman FANG Xinghai, CNIA President CHEN Quanxun, CASS Member LI Yang,

distinguished guests, ladies and gentlemen:

Good morning!

It is a great pleasure for me to be invited to the 14th Shanghai Derivatives Market Forum (SDMF). First of all, on behalf of Shanghai Municipal Government, I would like to express my congratulations on the holding of this forum and my sincere welcome to all guests from China and abroad. I would also like to take this opportunity to express my sincere thanks to national financial regulatory authorities such as the CSRC and all stakeholders for their attention and support to the development of Shanghai as an international financial center.

Finance is not only the nucleus of the modern economy, but also one of the core functions performed by Shanghai Municipality. Over recent years, Shanghai has been striving to implement the requirements of the Central Government by accelerating the development of Shanghai as an international financial center and continuously deepening financial opening-up and innovation. Through these efforts, global innovation, trading, pricing and clearing centers for Renminbi-denominated products have begun to take shape, the annual total turnover of the financial market has exceeded RMB 1,300trillion and the value added by the financial industry has accounted for more than 17% of Shanghai’s GDP, making Shanghai one of the cities with the most comprehensive financial market system in the world.

As an essential component of the financial market system, Shanghai’s futures market has played an important role in achieving the above results. First, risks have been forestalled due to the increasingly mature system of market regulations and improved regulatory capabilities. Second, efforts for promoting product innovation, a diverse range of commodity and financial futures products, and a growing product range have greatly spurred the development of the real economy. This year, Shanghai International Energy Exchange will unveil the crude oil futures, China’s first international futures product, which will be another major exploratory step taken by Shanghai’s financial market to further its opening up to the world.

The vitality and stability of the financial industry are essential to those of the economy as a whole. With the strong support from national financial regulatory authorities and the joint participation of financial institutions and financial specialists, Shanghai will enhance the synergy among its international financial center, Pilot FTZ and internationally influential technology innovation center, implement the “40 Rules for Financial Reform”, deepen financial opening-up and innovation and continuously increase Shanghai’s core competitiveness and international influence as an international financial center.

The theme of this forum “Seeking Steady Progress for Further Development and Openness” is highly aligned with the keynote of the current economic and financial tasks and also represents the resolve of all participants to strive for greater progress. You are encouraged to express your views freely at the forum, contributing your wisdom to the development of the derivatives market and Shanghai’s international financial center.

Lastly, I wish this forum a complete success.

Thank you!