On April 15, Dalian Commodity Exchange (DCE) and the Government of Inner Mongolia signed a strategic cooperation memorandum at Dalian Futures Building. Yun Guangzhong, vice chairman of Inner Mongolia and Li Ming, deputy Party chief and chief supervisor of DCE, attended the ceremony and signed the memorandum on behalf of the two sides. DCE vice president Wang Fenghai presided over the signing ceremony. Several officials of the region as well as DCE officials were present at the signing ceremony.
According to the memorandum, the two sides will, based on the fine industrial conditions in Inner Mongolia as well as DCE's requirement for development, make concerted efforts with regards to deepening cooperation, promoting mutual and joint development, advancing the construction of multi-layered capital market system. The two sides have set to establish the research and development coordination mechanism of the futures market, the coordination mechanism of jointly improving the support of the futures market for the development of the real economy of Inner Mongolia, the cooperation mechanism of DCE setting futures delivery warehouses in the region, the cooperation mechanism of education and training for the futures market, the mechanism of accurate and timely information exchange, the smooth and convenient communication mechanism and other mechanisms, in a bid to effectively improve the capacity of DCE’s relevant futures products for serving the real economy and their influence and promote the industrial upgrading and economic development of Inner Mongolia.
When presiding over the ceremony, Wang said that there are extensive industrial foundation and market foundation as well as broad space for development in strengthening the strategic cooperation between DCE and Inner Mongolia. As the only futures exchange in Northeast China, for years DCE has been active in serving the three provinces and Inner Mongolia in Northeast China. DCE has listed the coking coal, metallurgical coke, LLDPE, PVC, soybean, corn, corn starch and other futures products, which have close internal relations with the economy in Northeast China and can provide the related enterprises in Inner Mongolia with effective price indicators and instruments of risk management. From the perspective of the two sides’ economic connection, the cooperation space has great potential for growth. DCE is vigorously conducting research and development of the futures products in livestock, coal chemical and other sectors, which are highly correlated to the relevant pillar industries in Inner Mongolia, and the two sides can deepen the cooperation in research and development of products. In addition, DCE has joined hands with relevant futures companies and insurance companies to launch the pilots for OTC options and “futures + insurance”, and the Ministry of Finance and the Ministry of Agriculture have confirmed their support for expanding the pilots. DCE hopes that similar pilots can be introduced in Inner Mongolia so as to promote the healthy development of the corn, soybean and other industries in the regions.
