Recently, the first batch of domestic commodity futures ETFs, including ChinaAMC Soybean Meal Futures ETF, CCB Principal Asset Management Esunny ZCE Energy & Chemical Futures ETF, Dacheng Fund Non-ferrous Metal Futures ETF, was approved by the CSRC for registration and will be listed on SZSE. In general, commodity futures ETFs track the price index of commodity futures and invest in futures contracts included in the corresponding index. The above three commodity futures ETFs track Dalian Commodity Exchange Soybean Meal Futures Index, Esunny Zhengzhou Commodity Exchange Energy & Chemical index A, and Shanghai Futures Exchange Non-ferrous Metals Futures Index, respectively.
The listing of commodity futures ETFs for trading is of great significance. First, it further promotes the coordinated development of SZSE fund products and the futures market and enhances the ability of the capital market to serve the real economy. Second, the weak correlation between commodity futures ETFs and financial assets such as stocks and bonds enables investors to improve asset allocation and defuse investment risks. Third, the introduction of commodity futures ETF investment is conducive to improving the investor structure in the commodity futures market, stabilizing contract price, and propelling the sound development of commodity futures market.
The upcoming listing of the first batch of commodity futures on SZSE will further increase the variety of ETFs, push forward product innovation and enhance market appeal. Through continuous innovation and development, SZSE’s ETF market has preliminarily formed a relatively complete product line, covering a variety of assets including stocks, bonds, currencies, commodities and several domestic and overseas markets. As at the end of August 2019, there are 63 SZSE-listed ETFs, with a net asset value of CNY 110.6 billion within the exchange market, an increase of 17% and 51% over the end of 2018, respectively. Meanwhile, SZSE has attached much importance to the education of ETF innovative product investors and joint hands with relevant commodity exchanges to introduce indices and products to investors via the “SZSE ETF Training Sessions”.
SZSE will abide by the requirements of the CSRC to earnestly carry out the issuance and listing of commodity futures ETFs, actively step up efforts to launch more commodity futures ETF such as crude oil futures ETF and featured index products like inter-bank market bond ETF and Guangdong-Hong Kong-Macao Greater Bay Area ETF, continue to enrich product types, improve the market system, expand the market scale, and push for financial service innovation with higher quality and efficiency to fully serve the development of the real economy.
