Pudong to boost large-scale operation of bulk commodity market
Orderly operation in the market of bulk commodities is an important factor in enhancing the efficient circulation of commodities and boosting the economy of a district, as reported on Pudong's website on Jan 31.
For the year 2018, Pudong is trying to increase the sum of business transactions in the area to reach 500 billion yuan ($79 billion). Furthermore, Pudong plans on forming an operational headquarters to expand on the development of large-scale trade companies.
Pudong will also attempt to devise a new mode for transactions this year.
For example, it will do research on how to combine the market of future goods, companies managing the risk of future goods or liquidation companies with the commodity market, both online and offline. Then it will put the researched product into practice to see whether it is feasible and whether the newly developed mode can be applied in other districts.
In addition, Pudong will establish new associations to better organize the operations within the commodity market and improve the policies concerning the monitoring of the commodity market.
Last year, Pudong laid down policies to support the commodity market and trade entities. Owing to that effort, large-scale companies have now set up in the area.
Data shows that in 2017 the number of commodity markets totaled at 18, among which six are enterprises specialized in distributing resources. The first three quarters of 2017 witnessed a staggering amount of 357.6 billion yuan in the commodity market, representing 35% of the entire market revenue.
By the end of the third quarter last year, there was one enterprise worth 110 billion yuan - Bsteel company, three companies worth over 50 billion yuan, such as the Shanghai Petrol and Gas Exchange Center and SPPMM company and three ten billion yuan companies, such as the Shanghai Diamond Exchange.
Pudong to boost large-scale operation of bulk commodity market. [Photo provided to chinadaily.com.cn]