With the integration of international financial markets, China futures market is bound to face the competitive pressure of opening to the outside world, but it also has a good opportunity to introduce overseas investment and enhance its international status. The world-famous futures exchanges, with the status of global commodity price vane, are all open markets facing the whole world. Take the London Metal Exchange as an example, most of its market traders are from outside the UK, and the delivery warehouses are distributed in 32 regions in Europe, America and the Far East, reaching more than 400, forming a global delivery warehouse network. The free bidding of global traders and the convenient and efficient delivery warehouse network effectively ensure the authenticity and authority of London copper futures prices. In addition, while the domestic futures market is still closed, overseas exchanges are paying attention to the China market with great potential. A financial media published such a report on June 23rd, 2005: "SimonHeale, CEO of London Metal Exchange (LME), said that LME is currently studying the feasibility of Shanghai becoming the location of LME's franchised warehouse. He made the above remarks at the second China Copper Conference and the third China Aluminum Conference jointly sponsored by China Minmetals Corporation and British Metal Gazette ... In June this year, when NYMEX came to Shanghai and Guangzhou for promotion, its vice president also revealed to the media that NYMEX was planning to set up a copper delivery warehouse in Shanghai to intervene in the China market, but this plan is still in the negotiation stage with the government. "
Overseas exchanges located in Europe and America set up overseas delivery warehouses in Shanghai, where transportation costs are not superior, apparently aiming at the rapid economic momentum and huge market potential of opening up China. If, as reported by the media, the London Metal Exchange and the New York Mercantile Exchange set up copper delivery warehouses in Shanghai in the future, then the quotations of London copper and new york copper will naturally include the China factor, which will help to strengthen the authenticity and authority of copper futures prices in London and new york.
On the other hand, the domestic futures market is not as sensitive and responsive to international factors as the overseas market which is fully open at present, so it cannot actively lead the trend of international similar commodity prices. In this case, assuming that overseas exchanges set up delivery warehouses in China, it is possible to strengthen the linkage between domestic and foreign markets and promote the integration of domestic futures markets into the global trading system and pricing system, thus improving the global status of domestic exchanges, but it does not rule out that the pricing function of domestic futures markets is gradually weakened, thus further becoming a shadow market; On the other hand, the establishment of delivery warehouses in China by overseas exchanges will make it more convenient for domestic funds to participate in overseas futures market transactions, which may relatively divert domestic futures market funds and have a certain negative impact on the development of domestic futures market. It can be seen that the competition in the international futures market is becoming increasingly fierce. We prohibit overseas funds from participating in domestic futures trading and will not automatically keep overseas exchanges away from China. Under the trend of global economic integration, the opening of the futures market is an objective requirement that is independent of our will. "Wolf" will come sooner or later. "Dancing with the Wolf" is not terrible. What's important is that the domestic futures market should actively open up in the face of competitive pressure, make full use of China's advantages as a big consumer of bulk commodities, make itself bigger and stronger, and improve its international status, so as to get rid of the situation that domestic futures prices are deeply restricted by the trend of overseas futures prices and become a "shadow market" in foreign futures markets, and truly compete for the international pricing power of bulk commodities for China.
Two-way opening is conducive to the healthy development of the futures market, the improvement of the financial market system and the safety of strategic materials.
The futures market should be open, but the market opening should be mutually beneficial and benign. At present, the trading of various varieties of domestic futures exchanges is limited to domestic investors, and their influence in the world is still quite limited, and the prices generated by them can not be used as pricing reference in international trade. Therefore, while overseas futures markets attract domestic funds through various channels, while relaxing domestic qualified institutions to engage in overseas futures trading, domestic futures markets should speed up the introduction of QFII system and explore the innovation of trading and delivery rules in accordance with international practices, so as to improve the structure of market participants and make domestic futures prices better reflect international supply and demand and be accepted by more overseas enterprises. Only in this way can we form a benign linkage effect in the domestic and foreign futures markets of the same variety and achieve a win-win situation for common development, thus creating conditions for the formation of international pricing of important strategic materials such as copper and oil in China's futures exchange.
As a commodity derivative, commodity futures market is an important part of financial market. The gradual development and opening of the futures market can promote the perfection of China's financial market system and the formation of its international status. Under the trend of economic marketization and globalization, an open and international futures market can provide risk management functions for domestic and foreign investors.
In addition, as a net importer and consumer of important strategic materials such as copper and crude oil, opening the futures market is conducive to the inflow of overseas resources into China, giving full play to the basic role of the market in resource allocation, and playing a positive role in ensuring the safety of imported strategic materials and forming an important strategic resource logistics center.
Third, the opening of the futures market needs to solve the supporting problems of the delivery link.
The introduction of futures QFII will promote the opening of China futures market, but we should also have a clear understanding of the risks associated with it, and need corresponding supporting measures in a series of links such as contract design, foreign exchange management, risk control, settlement and delivery. Without supporting measures that are practical and in line with international practice, opening up can only stay in slogan and superficial form, which is difficult to attract more foreign investors, thus better reflecting international supply and demand. Among them, whether the physical delivery system is perfect or not plays an important role in the success of QFII introduction and even in building an exchange with international influence that can compete for the pricing power of international commodities.