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As the major EG (Ethylene Glycol) production, import and consumption areas in China, East China, with Jiangsu Province, Zhejiang Province and Shanghai as its core, has been clustered with large numbers of companies in the upstream, middle stream and downstream of the EG industry, whose production capacity, output and import volume take up 40%, 50% and 90% of the total in China, making it a place of strategic importance in the cultivation of the EG futures market. Under the support of DCE, futures companies there have made the most of the regional advantage to carry out market cultivation activities in the industry and among institutions and popularize basic knowledge and investment and hedging strategies of EG futures to production companies, trading companies, professional investment institutions and individuals. Futures companies in Jiangsu, Zhejiang and Shanghai have held a total of 65 promotion activities for over 2,400 companies and nearly 5,000 person times, satisfying the demand of industry companies and investment institutions on learning about EG futures. In the 1st quarter after the listing of EG futures, the EG futures trading volume of corporate futures companies in Jiangsu, Zhejiang and Shanghai was 8.98 million contracts, 51% of the total EG futures trading volume; that of investors there was 8.6 million contracts, taking up 49% of the total; and EG futures has been gradually recognized and accepted in Jiangsu, Zhejiang and Shanghai.
Driven by the market cultivation activities of futures companies in Jiangsu, Zhejiang and Shanghai, more and more entity enterprises have paid attention to and taken part in the market cultivation and trading of EG futures. These include both the ethylene-mode and the coal-mode production companies, whose EG production capacity takes up 40% of the total across the country, and some 25 large polyester companies with the capacity of over 400,000 tonnes also take part in relevant activities. Till March 8, 23,000 clients in Jiangsu, Zhejiang and Shanghai had involved in the trading of EG futures, and over 1,000 of them are corporate clients, whose trading volume accounts for over 30% of the total.
A market business official of DCE said that DCE would continue to set up the service platform for the information exchange of the institutions and the industry in Jiangsu, Zhejiang and Shanghai by focusing on new products, new instruments and new business and promoting the market vigor and functioning. It will guide entity enterprises and investment institutions to pay attention to and take part in the commodity futures market and facilitate the in-depth integration of the futures market and the real economy.
