Interview With Yan Weixing: The Carbon Trading Market Needs The Support Of Systematic Policy System

The national carbon emission trading market has officially entered the countdown.

On June 3, Li Jin, deputy general manager of Shanghai environment and energy exchange, revealed at the Hongqiao International Economic Forum that, according to the work deployment of the national competent department, the trading construction and system of the national carbon trading system will start online trading at the end of June.

This also means that the carbon trading market will change from the regional pilot stage to the national trading stage, and the carbon trading market ushers in new development opportunities. Recently, the China Securities Regulatory Commission (CSRC) has made it clear that it will speed up the construction of the futures market for carbon emission rights and guide the Guangzhou futures exchange to actively and steadily promote the research and development of carbon futures.

Yan Weixing, President of Guangdong securities and Futures Association, was interviewed by Southern finance and economics full media reporter on issues such as the research and development of carbon emission futures by Guangzhou futures exchange, and how Guangdong Province can build a strong financial province and the prospect of registration system reform during the "14th five year plan" period.

How to attract global capital and how to open up

Nanfang finance and Economics: the national carbon emission trading market will be launched soon. The China Securities Regulatory Commission has clearly pointed out that it will guide the Guangzhou futures exchange to actively and steadily promote the research and development of carbon futures, and how to look at the future prospects of the carbon emission rights futures launched by Guangzhou futures exchange?

Yan Weixing: over the past 30 years, our country has achieved rapid economic development. However, looking back, many enterprises' economic growth mode is relatively extensive, resulting in the destruction of the ecological environment and the waste of natural resources and other side effects, including serious carbon emissions.

At present, the State advocates high-quality development, and at the same time, it also puts forward the goal of achieving carbon neutrality in 2060. In my opinion, the launch of carbon emission rights futures by GTRI is just in time, which is also in line with the strategic direction of the whole country, and is of great benefit to the realization of high-quality development of enterprises.

However, it should also be noted that carbon emission trading is a more complex issue. Carbon emission is not a problem that a government department or an industry can solve, and a set of systematic policy system is needed to ensure the stable transaction. For example, how to formulate carbon emission standards; As a kind of trading variety, how to face the institutional investors and individual investors in the future is also a question worthy of discussion.

In addition, carbon emissions trading is nationwide trading, and air pollution is more serious in northwest, North China and other places. Due to the different resource endowment and economic development differences in different regions, carbon trading has different impacts on different regions.

However, as an innovative product, it still needs to consider all aspects of the impact.

Nanfang finance and Economics: how to understand Guangzhou futures exchange's main brand of innovation?

Yan Weixing: Guangqi is positioned at an innovative exchange. At present, the first is product innovation. At present, Dalian Commodity Exchange and Zhengzhou Commodity Exchange mainly trade agricultural products, while the last exchange mainly deals with metal futures such as steel, while CICE focuses on financial futures, while Guangzhou futures exchange will develop new futures varieties with extensive international influence, such as commodity index futures, carbon emission right futures, etc., which are guided by innovation and actively serve the national strategy.

The background construction, trading system, variety R & D and member services of the other four major futures exchanges are relatively mature. With these foundations, Guangzhou futures exchange has been regarded as "standing on the shoulders of giants" and can take fewer detours. However, from another perspective, it also requires Guangri to undertake more important tasks in areas that the previous four major futures exchanges did not have, including institutional innovation and reform, and promoting RMB internationalization.

Nanfang finance and Economics: under the background of accelerating financial opening up, how should Guangzhou futures exchange balance the relationship between financial security and openness?

Yan Weixing: Guangzhou futures exchange carries the expectation of national financial development. At present, although the trading volume of domestic futures exchanges ranks first in the global commodity futures market, there is a lack of international pricing power.

From the perspective of pricing power, China's futures market is still a regional price, the main reasons are: first, the development of China's futures market started late; Second, the relevant personnel training failed to keep up with the times; Third, the lack of international customer participation, the need to introduce foreign capital, industrial entities.

Taking Hong Kong as an example, capital flows freely. As a result, many international investors invest in Hong Kong, and the financial market is very developed. Therefore, Guangdong, Hong Kong and Macao Bay area needs to open wider to the outside world on the basis of Hong Kong's finance.

For example, SEHK may also attract more global funds to participate in derivatives trading in Guangdong, Hong Kong and Macao by designing more unique innovative derivatives, so as to increase the overall market vitality and participation. But at the same time, we should also pay attention to the overall financial systemic risk while launching some cross-border products.

The capital use efficiency of small and medium-sized enterprises needs to be improved

Southern finance and Economics: Guangdong Province proposes to rely on Guangzhou futures exchange to build a "whole futures industry chain". Guangdong Provincial futures companies and Futures and Capital Market Research Institute are also promoting the establishment of the industry chain. How to understand the whole industry chain of futures and how to build it?

Yan Weixing: to build the whole futures industry chain, we still need to focus on the three main bodies of real economy enterprises, futures trading platform and financial service institutions. The core issue is the pricing power of products.

For example, in recent years, the price of bulk commodities fluctuates violently. As a manufacturing enterprise with a large demand for raw materials, how to ease the pressure of commodity price fluctuation through the futures market. Therefore, to build the whole futures industry chain, not only the upstream raw material enterprises need to join the futures market, but also the manufacturing and processing enterprises in the middle and lower reaches.

In addition, financial services, research forces, and personnel training also need to keep up, so it is imperative to set up provincial futures companies and futures research institutes in Guangdong.

In the long run, enterprises can lock the material cost through the hedging function of futures, which is convenient for cost accounting and stable operation of enterprises. Even if the enterprises do not participate in the direct futures trading, they can still use the information of futures market to study and judge the market changes, so as to provide better business decision-making services for enterprises.

Southern finance and Economics: in the financial chapter of the "14th five year plan" of Guangdong Province, "improving the level of financial services for the real economy" has been highlighted. How can Guangdong's securities and futures industry better serve the development of the real economy?

Yan Weixing: whether it is the securities industry or the futures industry, finance should adhere to the position of returning to the origin, that is, to serve the real economy. Compared with the western developed countries, the capital utilization efficiency of most domestic enterprises is not high, and the financial market is not active enough.

For example, at present, the enterprises participating in the futures market are mainly large enterprises, and a large number of small and medium-sized enterprises lack the ability and willingness to participate. If these small and medium-sized enterprises participate in the futures market ahead of time in the commodity price rise and lock in the price of raw materials, they will not be unable to start work because of the price rise.

The futures market also has a leverage function. Enterprises can trade large amount of futures commodities with less capital only by paying margin. Therefore, capital is not the main obstacle for small and medium-sized enterprises to participate. I think the main reason is that the owners of small and medium-sized enterprises have little contact with the futures market and do not understand it; Second, there is a lack of relevant futures talents within the enterprise.

Therefore, in order to improve the ability of financial services to the real economy, futures companies, as intermediary service agencies, should actively provide services to small and medium-sized enterprises. On the other hand, they should also strengthen publicity and market cultivation. The government can also play a regulatory and guiding role in introducing financial support policies. For example, the government can guide the futures companies, banks, insurance and other financial institutions to jointly provide comprehensive financial services for enterprises.

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