China Non-ferrous Metals Industry Association Entered into Strategic Cooperation Agreement with China Futures Association

In late February,China Non-ferrous Metals Association (CNMIA) and China Futures Association (CFA) entered into strategic cooperation agreement in Beijing.Ge Honglin,Secretary of the Party Committee,and President of CNMIA,and Hong Lei,Secretary of the Party Committee,and President of CFA attended the signing ceremony.Wang Jian,Vice-President of CNMIA,and Wang Ying,Vice-President of CFA signed the agreement as representatives.The both parties will be devoted to giving full play to the strengths of futures market,so as to advance our nonferrous industry in a healthy and steady way.

Ge Honglin indicated that non-ferrous metals are not only important fundamental raw materials for national economy,but also key materials for high and new technology fields such as aerospace defense industry and supporting materials for new energy industry.Non-ferrous metals are playing an important role in quality development of national economy.In 2021,China nonferrous industry has had a solid beginning for the “14th Five-Year Plan”,and continues to develop in a steady way.He pointed out that China is the biggest manufacturing country and consumption country in non-ferrous metal in the world.China also has the biggest nonferrous spot market and the vital non-ferrous futures market.In the sharing development of our non-ferrous spot market and futures market,futures market is playing an important role in supporting our real economy in gaining development.The integration of futures market and spot market helps to improve the position of China non-ferrous futures market,and enhance China’s right of speech in pricing all across international non-ferrous market,which is pivotal in safeguarding our mineral resource safety,protecting the interests of our country and companies,and ensuring a smooth industry operation.CNMIA and CFA will carry out comprehensive communication and cooperation in terms of industry and financial integration,supplying ensuring and price stabilizing,upgrading risk management and improving pricing mechanism.The both parties will make efforts in playing an outstanding role in serving the government,industries and companies,finally getting successful in advancing China’s non-ferrous spot market and futures market in a healthy and steady way.

Hong Lei indicated that non-ferrous spot market and futures market supplementary each other and driving each other to gain common development is a good model in industry and financial integration and spot market and futures market connection.The agreement between CNMIA and CFA is a significant driving force for non-ferrous spot market and futures market to gain common development.He pointed out that China’s futures market developed steadily in 2021,with good performance of new record of trading volume and significant growth for consecutive three years.In the meantime,futures companies served the real economy in an upgraded model,and small and medium-sized companies were given great support in risk management.In recent years,“insurance + futures” model has been developed to support rural vitalization,and risk management models of basis trading and right containing trading have been invented to serve small,medium and micro companies.All of these new models have led to great successes.CFA will make more intensified efforts to promote deep integration of industry and finance,improve customer engagement,give full play to hedging players as a ballast stone for price,improve pricing quality and efficiency in futures market,optimize connection mechanism of spot market and futures market,and better provide support for our country to implement deployments in supplying ensuring and price stabilizing in bulk commodity.There will be huge potentials for the two Associations to cooperate in the future.It is everyone’s hope that the both Associations can make more progress in advancing industry and financial integration,and continuously improve the service provided by derivative instruments for non-ferrous industry chain in breadth and depth,so as to achieve better and steadier development for the both industries.

Based on the agreement,the both Associations,holing the principle of complementing each other’s advantages and seeking common development,will carry out comprehensive strategic cooperation with respect to information sharing,market cultivation,talent training and topic research.In this way,the both Associations will make great efforts to consolidate the support provided for nonferrous industry by futures market both in breadth and in depth.