On the morning of December 5, Huaxia Feedstuff Soybean Meal Futures ETF is officially listed for trading on Shenzhen Stock Exchange (SZSE) upon the ringing bell, making it the first commodity futures ETF listed in China. Vice President of the SZSE Tang Rui, Vice President of Dalian Commodity Exchange (DCE) Wang Yufei, , and General Manager of China Asset Management Co., Ltd. Li Yimei attend the listing ceremony.
Wang Yufei points out in the speech that the official listing of the soybean meal ETF marks a major result of the strengthened reform and innovation in the Chinese capital market and the first direct connection of the securities market and the commodity derivatives market, and its listing is of demonstrative influence on cementing the cooperation between the two markets and achieving a win-win result. It also shows that soybean meal has become the first product in China that covers the whole derivatives instruments chain of futures, options, swaps and ETF, which will help to continuously improve the diversified product system in the derivatives market and better serve the high-quality development of the real economy. We believe that the listing of more ETF products will provide securities investors with a new method and instrument of taking part in the derivatives market and optimizing the allocation of main categories of assets, and will also boost the derivatives market to keep improving the client structure and the market structure and realize its high-quality development. DCE will support more market institutions, including publicly offered funds, to develop and list more commodity futures investment products, thus better serving the real economy and market participants.
Data show that soybean meal, the largest product among the 12 oil, meal and feedstuff products, has great spot basis. The trading volume of DCE soybean meal futures has ranked the top among the global agricultural futures products for many times since its listing in 2000. The soybean meal options was listed as the first commodity options in China in 2017, and the commodity swaps business with the soybean meal futures and soybean meal index as the underlying was launched in 2018. And the issuance and listing of soybean meal futures ETF based on the DCE soybean meal futures index in 2019 will fill in the gap of commodity futures in the allocation of main categories of assets. At this point, soybean meal has become the commodity product covering the whole derivatives instrument chain.
DCE started the research in futures index in 2017, and it has successfully released 37 commodity futures indexes, forming the index system that covers both agricultural and industrial products and consists of comprehensive, component, theme, single commodity and customized indexes. Apart from the soybean meal futures ETF, various kinds of market institutions have developed 25 products like funds, bank wealth-management products, securities traders’ income voucher products, futures assets management plans and index insurance products, further satisfying investors’ diversified asset allocation demands.
