It was announced on June 1, 2016, at the “Ruida Futures 2015 Kunming Promotion of Investment in Bulk Commodities” that the non-ferrous metals index futures to be introduced by the Shanghai Futures Exchange (SHFE) tol help the enterprises reduce the costs of hedging.
According to the experts, compared with commodity futures, the non-ferrous metals index futures are more attractive to institutional investors because of the cash delivery, the avoidance of gradient margin system, the participation directly or indirectly through index ETF and other features.
An expert of the SHFE briefed the representatives of the entity enterprises on implementing a basket of metals hedging strategies and combined copper prices hedging strategy. The expert also said that the SHFE will further facilitate the participation of the institutions in the commodity futures market and improve the structures of the investors in the commodity futures market, so as to support the real economy.
Data Sources: SHFE