The DCE recently held the "Standard Warrant Pledge Business Forum" in Dalian. At the forum, the DCE's Executive Vice-President Guo Xiaoli said that the DCE will promote the standard warrant pledge business, and at the same time will explore new business models and develop full cooperation with banks.
At the forum, representatives from commercial banks discussed their experiences with the standard warrant pledge business. Currently, the warrant pledge business started by the banks is limited to standard warrant pledges, but in the future it will also include process financing and warrant securitization. Thus, the space for cooperation between banks and exchanges in this regard is great.
At the forum, representatives from the futures companies said in their speeches that the transfer of funds between banks and futures companies, as well as the standard warrant pledge business are the main methods of cooperation between the futures market and banks. They also said that futures companies should combine the features of the commodity futures market to introduce new business models of cooperation between banks and the futures market.
In recent years, the scale of delivery at the DCE has been around CNY 5 billion per year. The existence of standard warrant pledge loans is mainly to serve corporate clients, of which small-to-medium enterprises compose the majority of loans. These enterprises are concentrated in the logistics sector and lie within the area of the delivery warehouses, so the standard warrant pledge business will primarily focus on these areas.
80 representatives from commercial banks, futures companies, warehousing companies and commercial enterprises participated in the forum.