Established in 1999, the Shanghai Futures Exchange (“SHFE” or the “Exchange”) is a futures exchange regulated by the China Securities Regulatory Commission (“CSRC”). SHFE operates venues and facilities for the trading of futures and other derivatives; organizes and supervises trading activities; maintains a fair, orderly, and transparent market; and exercises market self-regulation in accordance with the Futures and Derivatives Law of the People’s Republic of China, the Regulations on Administration of Futures Trading, and the Measures for the Administration of Futures Exchanges, etc.

The Members’ Assembly is the highest authority of the Exchange and consists of all the Members. The Board of Directors is a permanent body of the Members’ Assembly and is accountable to it. SHFE has the following subsidiaries: Shanghai International Energy Exchange Co., Ltd. (“INE”), Shanghai Futures Information Technology Co., Ltd., Shanghai Institute of Futures and Derivatives, and Shanghai SHFE Business Services Co., Ltd.

SHFE is committed to supporting the real economy and national strategies, safeguarding China’s economic and financial security, and exercising front-line supervision. It also assists and encourages industrial clients to leverage futures and derivatives for transaction pricing, risk management, and resource allocation, so as to help China build secure and stable industrial/supply chains.

SHFE (together with INE) has a wide and diversified product mix covering metals, energy, chemical and service sectors. It currently lists 25 futures products—copper, aluminum, zinc, lead, tin, nickel, bonded copper, aluminum oxide, gold, silver, steel rebar, wire rod, hot-rolled coil, stainless steel, crude oil, fuel oil, low sulfur fuel oil (LSFO), bitumen, natural rubber, TSR 20, synthetic rubber, wood pulp, SCFIS (Europe), cast aluminum alloy, and offset paper—and 18 options products: copper, natural rubber, gold, aluminum, zinc, crude oil, steel rebar, silver, synthetic rubber, lead, nickel, tin, aluminum oxide, cast aluminum alloy, offset paper, bitumen, fuel oil, and wood pulp.

SHFE is a pioneer in the opening up of China’s futures market. Among the products listed on SHFE and INE, 6 products are directly opened to overseas investors (including crude oil, LSFO, TSR 20, bonded copper, and SCFIS (Europe) futures, and crude oil options) and 32 products are accessible to Qualified Foreign Investors.

The SHFE OTC Platform enables a wide range of warrant transactions, including buyer listings, seller listings, private listings, and online collateralization. Nearly every futures product is supported, providing customized and one-stop services to industrial clients.

SHFE has gradually built a safe, efficient, and well-functioning market system that features transparent and rule-based supervision, healthy participant structure, and diverse overseas access channels, by establishing robust, orderly, and effective rules on trading, self-regulation, and risk control, as well as trading systems, data distribution systems, and telecommunications facilities that enable safe, efficient, and stable market transactions. And in terms of industrial support, SHFE has launched the Business Support Initiative, Industry and Finance Service Bases, and the Corporate Client Development Program to deliver innovative and more granular market services, with the aim to serve the quality development of China’s real economy and the new development paradigm.

In recent years, SHFE rolled out a steady stream of new products and instruments, the market is more resilient and risk-resistant, with increasing participation of industrial clients and improved capacities to serve the real economy, and ever more influential “Shanghai Prices”. According to the Futures Industry Association (FIA) statistics, by the volume of exchange-traded commodity derivatives, SHFE has consistently been one of the top exchanges in the world for many years.

Looking ahead, SHFE will continue to practice its corporate values of robustness, proactiveness, integrity, and professionalism, and focus its priorities on product offerings, improving services and market mechanisms, further opening of the market, robust IT systems, green finance, and effective self-regulation, so as to better serve the real economy, keep improving its price influence in key commodities, and pursue a unique financial development path with Chinese characteristics.