Futures in China
Introduction 2014-06-17
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 commodities, i.e., gold, silver, copper, aluminum, lead, steel rebar, steel wire rod, 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).