'Shanghai Price' and 'Shanghai Pattern' driving FTZ growth
With the optimized allocation of industrial and financial resources and the development of various exchanges, the Shanghai Free Trade Zone has made significant strides in advancing its growth.
Established a decade ago, the China (Shanghai) Pilot Free Trade Zone has been at a forefront in promoting financial reform and opening up, with the "Shanghai Price" and "Shanghai Pattern" taking shape within the zone and playing a crucial role in driving the FTZ's development.
The influence of the "Shanghai Price" on the global market is steadily growing.
The Shanghai Futures Exchange (SHFE), consistently ranked among the top three exchanges in terms of trading volume, witnessed a trading volume of 1.9 billion contracts in 2022 alone. Notably, the Shanghai non-ferrous metals futures market has evolved from a "shadow market" to one of the three major global non-ferrous metals pricing centers, according to Li Yun of the SHFE.
In a significant move, international copper futures were listed on the SHFE in November 2020, traded on the basis of "international platform, net pricing, bonded delivery, and yuan denomination." It was China's first futures product that grants overseas investors access to the Chinese copper market through a "dual-contract" model.
The overseas non-ferrous metals industry is paying increasingly closer attention to the SHFE's prices, said Ge Wanwan of the exchange. Additionally, the SHFE offers stability and reasonable price signals during abnormal price fluctuations, aiding real enterprises' production and operations.
The Shanghai Gold Exchange (SGE), meanwhile, has also witnessed the growing influence of the "Shanghai Price."
By introducing benchmark prices for yuan-denominated bulk commodities, such as gold and silver, the SGE has established a tripartite pricing status among London, New York, and Shanghai. Collaborations with the Chicago Mercantile Exchange Group and the Dubai Multi Commodities Centre have further expanded the international application and influence of the "Shanghai Price."
In the realm of data trading, the Shanghai Data Exchange (SDE) has contributed to the high-quality development of the digital economy. Recognizing the value of data elements as the fifth major production factor, the exchange has established multiple data product sectors, including finance, shipping and transportation, and international sectors, with nearly 1,500 listings in total.
The trading volume of data has also continued to rise, with the monthly trading volume exceeding 100 million yuan (US$13.7 million) in August this year, according to Wei Zhilin, deputy general manager of the SDE.
Through collaborations with relevant institutions, the SDE is constructing a platform for data property rights registration and guiding the market's standardized development.