PTA Futures Introduced Overseas Traders Approved By The SFC. Why Has It Become An International Leader In China'S Futures Market?

On September 21st, a news conference was held at the China Securities Regulatory Commission (CSRC). The Zhengzhou commodity exchange (PTA) has been approved to introduce foreign traders into specific varieties.

Relevant officials in Zhengshang said that in the context of the current "one belt and one way" initiative and the gradual internationalization of RMB, the introduction of PTA futures into the pilot market will further promote our country to become the pricing center of global polyester products, and better promote the futures market to serve the development of the real economy.

In the aromatics industry chain, PX is mainly used for the production of PTA, while PTA is mainly used to produce polyester.

PTA is an important raw material of bulk textile, and PTA price is the pricing center of polyester industry chain.

In 2006,

Listed on Zhengshang, it is the first chemical futures variety listed in China, and it is also the only polyester industry chain futures in the world.

It is understood that PTA futures market has been running smoothly for more than 10 years, and the effect of serving the real economy is remarkable.

In the domestic market, PTA futures improved the pricing efficiency of the upstream and downstream products and the efficiency of market allocation of resources, and improved the risk management level of enterprises. In the international market, due to China's strong industrial base, PTA futures price became a key concern of overseas institutions, and also an important reference for pricing international trade. Overseas related enterprises called for continuous calls to enter the PTA futures market.

Under the background, under the background, in order to better serve the real economy, serve the national strategy and ensure the smooth operation of the market, and closely combine the needs of the domestic and foreign polyester industry, we have studied and formulated the scheme of introducing PTA futures into overseas traders, and revised and improved the relevant supporting system and technology system, and made a careful assessment.

Preparations are now in place.

"PTA futures market is fully equipped with the" international trend ".

The official said that from the market basis, PTA futures market has good liquidity and investor structure.

In 2017, the average daily turnover of PTA futures reached 575 thousand and 400 hands (one side, the same below), average daily positions reached 1 million 80 thousand and 800 hands, and the PTA period price correlation reached 0.99.

In the ranking of domestic industrial products in 2017, PTA ranked the forefront of industrial products.

From the perspective of institutional basis, relevant systems and regulatory systems can effectively prevent and defuse various risks and ensure stable and healthy development of the market.

Analysts believe that the introduction of PTA futures to foreign traders is of great significance.

First, when the PTA futures price has become an important reference for domestic enterprises and foreign enterprises in the trade negotiations, pushing China's unique futures varieties to the world will enhance the global influence of its price and promote China to become the global pricing center for polyester products.

The two is to introduce overseas traders to participate in the market. A wider range of traders will help to ensure fair interests of relevant enterprises in international trade and enhance the effectiveness of hedging.

Three, the import and export trade of PTA upstream and downstream products is highly compatible with the countries and regions along the belt and road. PTA futures will also play a role in a wider range and promote the development of the global polyester industry.

The relevant foreign trade enterprises and industrial institutions have positive attitudes towards the approval of PTA futures to be introduced into foreign traders by specific varieties.

Zanchi, chief executive officer of GSI, Italy, said it is very keen to enter the market as a "qualified buyer".

As the largest bottle dealer in the European market, GSI has a long-term procurement contract with Chinese factories. The company hopes to lock in the fluctuation risk of purchasing prices through futures market.

He said that foreign buyers were always concerned about China's PTA futures, but lacked a legitimate and stable channel to participate. Therefore, he hoped that the PTA futures market could be opened to international traders.

Recently, the 2018 Third China (Zhengzhou) International Futures forum PTA sub forum, some enterprises in Korea, Japan and the United States also expressed their interest and interest in the PTA futures market.

Fang Xinghai, vice chairman of the China Securities Regulatory Commission, pointed out at a previous meeting that futures markets mainly include commodity futures and financial futures.

In today's world, almost every commodity is faced with a global unified market without borders.

This objectively requires an influential commodity futures market to have a global paction. Investors from both sides must come from all parts of the world, otherwise the futures price determined can not accurately reflect the actual supply and demand relationship of bulk commodities, or is inaccurate or unauthorized.

Although the financial futures market has some regional characteristics, with the acceleration of opening up to the outside world, more and more overseas investors have entered our financial market. They urgently need to participate in financial futures trading to manage risks and provide more and better services to customers. This objectively requires that China's financial futures market should also be opened up to the outside world.

As a "star breed" of Zheng Shang, PTA futures is playing a leading role in the process of internationalization of China's futures.

From a deeper perspective, this is certainly closely related to the international status of China's PTA and polyester industry.

China is already the largest producer and consumer of PTA and polyester in the world. The leading polyester enterprises including Rong Sheng, Heng Yi, Hengli, Tong Kun and so on have already laid the industrial chain to the upstream PTA and PX terminals.

Yisheng, Hengli and other enterprises in the PTA production technology level, the scale of production capacity ranks the highest in the world.

According to the data in 2017, the capacity of PTA in China is about 49 million tons, accounting for 55% of the total PTA capacity of the world.

In 2017, the output of PTA in China was 35 million 860 thousand tons and the apparent consumption was 35 million 880 thousand tons. China is the largest producer and consumer of PTA in the world.

In 2017, the annual output of polyester yarn in China is about 39 million 340 thousand tons. In 2018, millions of tons of polyester production capacity will be added in the domestic market.

From the export data, in 2017, China's export of chemical fiber products more than 4 million tons, polyester filament and polyester staple fiber.

Among them, the export of polyester filament is about 2 million 40 thousand tons, accounting for our country.

The total export volume of the product is 50.47%.

There is no doubt that China's polyester and

Industry has become a global influence.

And the most important force in the PTA market.

Next, with the successful commissioning of several private enterprises in China, the self-sufficiency rate of China's PX will be greatly improved, which will further rewrite the global petrochemical industry and polyester industry.

That is to say, in the industrial chain of "PX-PTA- polyester", "Chinese price" is attracting more and more attention from the global practitioners, and the Chinese market has increasingly highlighted the value and status of the "wind vane" in the pricing of the global polyester industry chain.

Commodity futures tools just can meet the urgent demand in the international market.

From the actual situation of the futures market, with the deepening of China's opening up to the outside world, especially the continuous promotion of the "one belt and one road" initiative, the internationalization level of China's futures market is gradually improving.

Especially this year, the successful listing of crude oil futures and the successful introduction of iron ore futures into overseas traders signifies a substantial step forward in the internationalization of China's futures market.

In the future, with the landing of more major open initiatives, it will be a general trend to accelerate the internationalization of the futures market.

In fact, commodity trade is global and commodity futures are therefore global.

It is also global.

The important sign of high quality futures market is that futures prices have a broader and more authoritative representation.

The commodity supply and demand corresponding to commodity futures, including PTA, is increasingly showing the characteristics of globalization. Only more open, allowing domestic and foreign investors to participate in pactions more easily, and better converge the global supply and demand information, so that futures prices will be more representative and have wider influence.

At the same time, with the enhancement of international competitiveness, the convenience of investment and trade and the continuous promotion of the "one belt and one way" initiative, more and more Chinese enterprises are taking the "going out" step.

With the deepening of this two-way opening, the demand for pricing and managing risks in futures market has become more and more intense.

It is against this background that China is unique and the only one in the world.

Futures PTA futures are widely concerned by the international market. PTA futures have been approved to become foreign traders with specific varieties. They are undertaking the task of "pioneer" in the internationalization of China's futures varieties.

According to the introduction, in promoting the opening of specific products, combined with the characteristics of varieties, Zhengshang chose PTA as a pilot variety.

The preparation of rules, system revision and system development for PTA futures to introduce overseas traders has been completed.

Next, Zheng Shang will continue to make relevant preparations to ensure that PTA futures will be introduced to overseas traders safely and smoothly.

One is to solicit domestic and foreign traders' suggestions, and continuously improve the relevant rules for PTA to introduce foreign traders; the two is to actively carry out the whole market joint test to ensure the safety and efficiency of the technology system; the three is to strengthen the study of the overseas regulatory regime and the conduct of traders, to ensure smooth operation after the opening of the market; four, to do a solid job in investor education and publicity work, to help foreign traders better understand the rules and do a good job in market risk prevention and control.

"Zheng Shang will continue to deepen the implementation of various preparatory work, and take the opening of PTA as an opportunity to introduce a group of overseas participants with strong, well-known and high management standards to optimize the market structure, enhance the internationalization level of Zhengzhou, and better serve the international development of Chinese enterprises, and help the" one belt and one road "initiative and the opening up of China's economy.

Zheng Shang's official said.