Date: November 29, 2013
Source: China Securities Journal

　　The Hong Kong Exchanges and Clearing Limited (HKEx) will focus on derivatives market development including exchange rate, interest rate and commodity futures by adjusting its current stock-oriented trading structure in the next three years, said Charles Li, Chief Executive Officer of HKEx, at a press briefing held by the HKEx in Beijing on November 28, 2013.
　　Charles Li disclosed that to build sophisticated commodity, exchange rate and interest rate futures markets is the greatest challenge for China, which now faces a major transition from capital importation to capital exportation as well as the currency internationalization issue of being the world's second largest economy. Being the importing country for almost all bulk commodities, and as susceptible to prices as it is, China is supposed to be very motivated to influence prices. With the advantages of taking up a large proportion of quantities, China should be a “price-setter” instead of merely a “price-taker”.
　　“China’s influence on worldwide prices of bulk commodities depends on the possibility of establishing an influential bulk commodities related derivatives trading market. Besides, as the second largest economy, China calls for the establishment of exchange rate and interest rate futures markets in the approach toward its currency openness,” Charles Li stressed.
　　Charles Li said that the HKEx will undoubtedly make great progress in futures of exchange rate, interest rate and commodity in the backdrop of China's economic transformation. Last year, the HKEx purchased the London Metal Exchange (LME). There stands much room for improvement of development for China, which takes up 40% of metal consumption, or only 20% of the related trading volume. In the future, the LME is expected to form a RMB-denominated settlement mode or even a trading mode based on the introduced pricing benchmark in the Asian time zone.
　　Among those domestic businesses that owe their development to the HKEx in the past 2 decades are the world’s most valuable publicly listed telecommunications company, commercial banks, insurance (rest assured assurance) companies and electric power companies. The HKEx, in return, has increased almost tenfold in its market value, with the Chinese-funded enterprises being the mainstay of Hong Kong’s stock market, Charles Li added.