On the occasion of celebrating the 70th anniversary of the founding of the People’s Republic of China, the ethenylbenzene futures, China’s 70th derivative product, is listed for trading on Dalian Commodity Exchange (DCE) on September 26. Tan Chengxu, Mayor of Dalian, and Luo Hongsheng, Director of the Futures Regulation Department of the China Securities Regulatory Commission (CSRC), jointly strike the gong for the listing of ethenylbenzene futures. Luo Hongsheng reads out the approval document.
DCE Party Chief and Chairman Li Zhengqiang says that listing futures and options products that the real economy needs to manage price fluctuation risks is the important part of the derivatives market building. The ethenylbenzene futures, the 5th chemical product and the 21st derivatives product listed on DCE, is the result of DCE boosting the in-depth integration and common development of the futures industry and the petrochemical industry. The ethenylbenzene futures will form a more complete risk-avoiding chain together with crude oil, coal, rubber and other energy and chemical products, thus providing relevant enterprises with an open and transparent price signal and more improved risk-avoiding instruments.
Zhao Jungui, Vice President of the China Petroleum and Chemical Industry Federation, says that China has become the largest ethenylbenzene producer and consumer in the world. In 2018, China produced over 9 million tonnes of ethenylbenzene, accounting for 27% of the total in the world, and it consumed nearly 11 million tonnes of ethenylbenzene, taking up 35% of the total in the world, presenting the foreign-trade dependence of about 28%. As affected by the fluctuation of crude oil price, there has been an increasing demand on risk management in the industry. The listing of ethenylbenzene futures is of profound significance for further promoting the futures market’s role in serving the real economy, satisfying the chemical industry’s risk management demand, and guaranteeing the sound, stable and high-quality development of the chemical industry.
Over the past 30 years of exploring the development of Chinese derivatives market, we have based on the fundamental purpose of serving the real economy. With the listing of the ethenylbenzene futures, there are 57 listed commodity futures products, 7 financial futures and options products, 6 commodity options products, which total 70 derivatives products in the futures market of China, making it the world’s second largest futures and options trading market.
DCE Vice President Zhu Lihong presided over the listing ceremony. Attending the activity are officials from relevant national ministries and commissions as well as Dalian government and also representatives from the securities and futures regulatory system, industry associations like the China Petroleum and Chemical Industry Federation, chemical enterprises, financial institutions and the news media.
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