There are mainly four fotures exchange in China, Shanghai Fotures Exchange, Dalian Commodity Exchange, Zhengzhou Commodity Exchange, and HongKong Fotures Exchange. Here gives the first two chinese fotures exchange companies an introduction in detail.
Shanghai Futures Exchange
Shanghai Futures Exchange (SHFE) is organized under relevant rules and regulations. A self-regulated entity, it performs functions that are specified in its bylaws and state laws and regulations. It is regulated by the China Securities Regulatory Commission (CSRC). At present, futures contracts underlying five commodities, i.e., copper, aluminum, natural rubber, fuel oil and zinc, are listed for trading.
Guided by the Concept of Scientific Development, Shanghai Futures Exchange commits itself to promoting the opening-up and continued progress of the capital market and construction of a harmonious market environment. SHFE adheres to the guidelines that are generalized as "legislation, supervision, self-regulation and standardization", with stability, development and innovation as a priority. The exchange organizes trading activities strictly according to the laws and rules, and fulfills its functions as a front-line regulator. SHFE endeavors to develop itself into a regulated, efficient, transparent and product-inclusive internationalized futures exchange that focuses on the metal, energy and chemical-related industrial products and the corresponding derivatives. In order to realize the functions of the futures market as price discovery and risk hedging, and serve the development of the national economy, Shanghai Futures Exchange is establishing a secure, orderly, efficient market mechanism and an open, fair, equitable and transparent market environment.
There are over 200 members now in Shanghai Futures Exchange, among which about 80% are futures brokerage firms. And the exchange has already set up more than 250 distant trading terminals nationwide. (See figure 1 for the whereabouts of the members and trading terminals).
Dalian Commodity Exchange
Founded on February 28, 1993 ,it is one of the four futures exchanges in China. As a self-regulated, non-profit organization, the DCE, by strictly enforcing government regulations and exchange rules, has steady grown since its establishment to become the biggest agricultural commodities futures trading center in the country.
Currently, the exchange's listed futures products are non-genetically modified soybean, or soybean No.1, genetically modified soybean, or soybean No.2, soybean meal, soybean oil, corn, and malting barley. By the end of 2006, total trading volume since establishment reached 1.15 billion lots, total trading value were 27.8 trillion yuan, and total delivery amounted to 8.07 million metric tons. The exchange is now the world's second largest corn futures market.
In the recent years, the DCE has actively sought international cooperation and expansion. It is a member institution of both the U.S. Futures Industry Association and the U.K. Futures and Options Association. It has signed cooperation agreements with more than 10 overseas futures exchanges, Chicago Mercantile Exchange, to share information and jointly develop new markets.
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