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Two income voucher products developed by Orient Securities on the basis of Dalian Commodity Exchange (DCE) Commodity Index are officially listed on January 7. The two products are the call and put dual options income structures, respectively, whose underlying is the DCE soybean meal futures price index. It is introduced that the above two products are new securities traders’ income voucher products linked with the DCE Commodity Index after a similar product debuted in December 2018.
Income voucher is a debt financing instrument issued by securities companies, and it can take a securities trader’s credit as a guarantee for principal and earning. It is of great attractiveness for individual investors due to its low investment threshold. According to the statistics of the Securities Association of China, accumulated 95 securities traders reported their over-the-counter securities business by the end of November 2018, in which the surviving scale of income voucher reached RMB 364.515 billion. In November, securities companies newly issued 3,004 income vouchers of RMB 50.668 billion, of which 58.67% were issued via the over-the-counter market and 41.33% via the quotation system.
The two income voucher products linked with the DCE soybean meal index issued by the Orient Securities will provide investors with a convenient instrument to involve in the bulk commodity market and gain earnings. Investors need not open futures accounts and can buy products through their securities accounts. The two products are the call and put dual option income structures, respectively. An investor can judge and choose on the future market. If the judgment is correct, the investor would get the fixed income plus a relatively high floating income; otherwise, they would only get the bottom-guaranteed fixed income. An investor can also purchase 2 call and put income vouchers with the same amount, equaling assembling a fixed-income product with medium-sized earning. Such a product design has gained popularity in the market, and investors have been active in subscription.
Orient Securities is the 2nd securities company authorized by DCE to develop income voucher based on its commodity Index after GF Securities. The income vouchers issued this time has further expanded the application scope of the DCE Commodity Index. Next, DCE will continue to encourage external institutions to develop asset management and risk management products based on the DCE Commodity Indexes, such as publicly offered funds, bank-related wealth management products, assets management plans, income vouchers, swaps and insurance products, with an aim to promote the development of the commodity indexation investment in China, expand the scale of the commodity futures market and optimize the investor structure.
