Speech at the Ceremony of Overseas Investors’ Participation in RBD Palm Olein Futures Trading
大连商品交易所党委书记、理事长 冉 华
Ran Hua, Secretary of the CPC Committee and Chairman of Dalian Commodity Exchange
December 22, 2020, Dalian
Distinguished Mr. Jin Guowei, Vice Mayor of Dalian; Mr. Yan Shaoming, Deputy Director of Department of Futures Supervision of CSRC; Mr. Yu Hailian, Director of Dalian Securities Regulatory Bureau of CSRC,
Leaders, guests, and friends online,
Today, while it is a sunny winter day here in northeast China, those tall kapok trees in southern China are basking in spring-like warm weather. I am very pleased to meet all of you online to jointly witness the overseas investors’ participation in the DCE RBD palm olein futures trading at the end of 2020. This is an active endeavor for China’s capital market to implement high-quality opening up, as well as a real action to help establish a new“dual circulation”development pattern that is based on domestic economic cycle.
On behalf of DCE, I would like to extend a warmest welcome to all the leaders and guests attending this event, and express my heartfelt thanks to all the friends who have supported the development of DCE for a long time!
In 2017, RBD palm olein futures was listed on DCE, making it China’s first futures product for solely imported commodities. Over the past 13 years, DCE has become the world’s largest RBD palm olein futures market by leveraging domestic and foreign markets and meeting diverse needs in terms of trade and processing, etc. From January to November this year, the trading volume of palm olein futures on DCE reached nearly 290 million lots, and the average daily open interest was recorded to be 520,000 lots, both of which have grown significantly compared with the same period last year. At present, the futures price at DCE is used as the basis price for basis trading of palm oil in China. Many Chinese large oils and oilseeds companies and multi-national grain and oil companies in China also use RBD palm olein futures for risk management.
In 2018, iron ore futures became the first listed product that opened to overseas investors. Over the past two years, we have worked hard and proactively promoted the market internationalization. China is the world’s second largest importer of palm oil, playing a key role in the palm oil industrial and supply chain. Therefore, the industry both at home and abroad has been calling for China’s opening of its RBD palm olein futures market. Today, by responding to this call, DCE is proud to announce the internationalization of RBD palm olein futures officially starts.
As a Chinese saying goes, “a journey of a thousand miles begins with a single step”. In exploring the futures market internationalization, DCE will make every effort to implement this strategy, and improve the market operation quality and efficiency. Our objectives are to provide an open, transparent price discovery platform for industrial enterprises all over the world, and to build an orderly and standardized risk management channel for global commodities trade. By doing so, we will forge ahead and constantly innovate to expand our opening up.
Ladies and gentlemen, dear friends, standing at the historical juncture of realizing China’s Two Centenary Goals and facing the historical trend of open and win-win cooperation, DCE will focus on building a “standardized, transparent, open, dynamic and resilient” capital market. We will adhere to the principle of orienting our services towards the real economy and aligning our innovation with the global pace. We will speed up the building of a world-class derivatives exchange that integrates futures and physical, synergizes exchange and off-exchange, and connects domestic and overseas markets, so as to make greater contribution to enhancing global resource allocation and advancing the high-quality development of China’s economy.