Market Bridge Consulting

 　Shanghai International Energy Exchange (INE) plans to conduct the fourth whole market test of TAS (Trade at Settlement) on Crude Oil Futures in production environment on October 11, 2020 (Sunday). Please refer to the enclosed Guide for the Fourth Test of TAS on Crude Oil Futures for reference. 　　Technical Contact 　　Phone: 021-68400802 　　Email: tech@shfe.com.cn 　　FAX: 021-68400385 　　 Attachment: Guide for the Fourth Test of TAS on Crude Oil Futures For China derivatives market access and more market information please contact sherry_ustc@163.com

  The new contract will provide relevant enterprises open, continuous and transparent price signals and effective risk management tools, the CSRC said. The CSRC (China Securities Regulatory Commission) has given the Zhengzhou Commodity Exchange (ZCE) the green light to start trading in polyester staple fiber futures. China is a major producer and consumer of polyester staple fiber, an important textile material. According to CSRC spokesperson Chang Depeng, the new futures contract will help provide relevant enterprises with open, continuous and transparent price signals and effective risk management tools, which will help promote the stable and healthy development of the staple fiber industry. The ZCE is asked to make full preparations to ensure the stable launch and stable operation of trading in the new contract. Futures trading in polyester staple fiber will launch on 12 October. In June, the ZCE launched trading in steam coal options, which was among six new...

 Shanghai International Energy Exchange (hereinafter referred to as the Exchange) will release marker prices for the crude oil futures starting from October 12, 2020. The details are as follows. 　　1. Eligible Contracts 　　The eligible contracts of the marker prices for the Shanghai crude oil futures will be the first and the second nearby crude oil futures contracts. 　　The Exchange will stop releasing marker prices for an eligible contract after the market close on the eighth trading day preceding the last trading day of the contract.  　　2. Marker Period 　　The marker periods of crude oil futures are 00:27-00:30, 11:27-11:30 and 14:57-15:00 Beijing Time on each trading day. 　　3. Calculation 　　The marker prices for each eligible contract will be the volume weighted average price (VWAP) of outright trades on that contract within the three- minutes’ marker period respectively. 　　If there is no transaction within a marker period on the trading day, there will be no m...

 To meet investor needs and improve market efficiency, Shanghai International Energy Exchange (hereinafter referred to as the Exchange) will offer Trade at Settlement (hereinafter referred to as TAS) orders starting from 9:00 a.m., October 12, 2020.  TAS order is only available to the first and the second nearby crude oil futures contracts (hereinafter referred to as the eligible contracts), and is only for the current day’s settlement price of the eligible contract. TAS order will no longer be available after the market closes on the eighth trading day preceding the last trading day of the eligible contract. Please see the appendix for more details of this order. Any adjustment shall be announced by the Exchange. Appendix: Instructions on Trade at Settlement (TAS) Orders For China derivatives market access and more market information please contact sherry_ustc@163.com

 FTSE Russell announced on September 25, 2020 that it will add Chinese government bonds to its World Government Bond Index (WGBI). The reform and opening-up of the Chinese bond market has been pushed forward steadily in recent years. As of end-August 2020, the market was worth RMB112 trillion in terms of its outstanding volume. In particular, RMB2.8 trillion of bonds were held by international investors, registering an average annual growth of 40 percent in the past three years. FTSE Russell CEO Waqas Samad said that Chinese Government Bonds will be added  to the FTSE WGBI from October 2021. The Chinese authorities have worked hard to enhance the infrastructure of the government bond market. Pending an affirmation in March 2021, international investors will be able to access the second largest bond market in the world through FTSE Russell’s flagship WGBI. According to Pan Gongsheng, Deputy Governo...

 Upon the approval by the State Council, for the purpose of  further opening up China’s capital markets, China Securities Regulatory Commission (CSRC), People’s Bank of China (PBC), and State Administration of Foreign Exchange (SAFE) hereby release the Measures for the Administration of Domestic Securities and Futures Investment by Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors (hereinafter referred to as the Measures) on September, 25th , 2020. The CSRC is simultaneously releasing an implementary rule, Provisions on Issues Concerning the Implementation of the Measures for the Administration of Domestic Securities and Futures Investment by Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors (hereinafter referred to as the Provisions). The Measures and the Provisions shall take effect on November, 1st ,2020. In accordance with the rule-making procedure, the CSRC has solicited pub...

  FTSE Russell will add Chinese government bonds to its flagship World Government Bond Index (WGBI), the index provider said on Thursday, paving the way for billions of dollars of inflows into the world’s second-largest economy. The Chinese government bonds will be included on the index from October 2021, pending confirmation in March 2021. The addition will be phased into the index over a period of 12 months. “Since being placed on the watch list, the Chinese authorities have implemented significant improvements to the fixed income market infrastructure, facilitating easier participation by international investors,” FTSE Russell said in a statement. The index includes mostly developed economies and is a major step for Chinese bonds as investors seek safe-haven assets in a zero-interest-rate world. “Because the Chinese domestic monetary policy is not that closely linked with global monetary policy, you do get diversification benefits allocating to [yuan] bonds,” said Binay Chandgot...