Li Xuetao Makes Keynote Speech at Shanghai Derivatives Market Forum

On May 28, the 4^th Shanghai Derivatives Market Forum - Metals, Energy and Rubber organized by Shanghai Futures Exchange was held at Pudong Shangri-La Hotel. Li Xuetao, assistant president of SinoChem International was invited to make the keynote speech.

This year marks the first year of Chinese government's full commitment of WTO promises and the 15th anniversary of the establishment of Shanghai Futures Exchange. As a major industry gathering of China's futures industry, Shanghai Derivatives Market Forum chose "economic globalization and a booming Chinese futures market" as its theme and tended to explore the trends of such commodities as metal, energy and rubber against the ever-changing political and economical background both at home and abroad.

In his speech, Li noted that many factors contributed to the price fluctuation of natural rubber. One is the macro environment and investment features, including appreciation of RMB and liquidity surplus; and several other factors involving storage, supply and needs, as well as impacts from the alternative products such as synthetic rubber and compound rubber. According to him, China's natural rubber market is not yet an independent one and its financial market has to undergo the standardization process. There is a long way to go to get the global natural rubber pricing right and the trading types of natural rubber in Shanghai Futures Exchange should be further expanded. He also mentioned the state policy on natural rubber and the tariff made by relevant departments, etc. He further analyzed the changing trend of international natural rubber supply and suggested that Shanghai Futures Exchange expand the trading types of natural rubber in an effort to integrate with the international market and increase the fluidity and market guidance in natural rubber industry.