Shanghai Waigaoqiao Free Trade Zone has revealed that China’s earlier LME registered warehouse is expected to be approved by the end of the year and will be located in Shanghai Waigaoqiao Free Trade Zone. According to industry insiders, LME's establishment of delivery warehouses in China is mainly used for the delivery of copper futures, and facilitates the import and export of copper stocks. This is not only the recognition of the Shanghai futures market by the international market, but also the deepening of the LME's services and strengthening of competition on a global scale. It is in line with the Shanghai Futures Exchange to compete for the domestic market. Robbing the domestic market According to a person in charge of Shanghai Waigaoqiao Free Trade Zone, he is engaged in the storage and transportation industry. Steinweg has submitted an application to the LME Delivery Committee, but it also needs to meet some of the LME's criteria. Its warehouse in the Waigaoqiao Free Trade Zone can be used for the delivery of LME warehouse orders. The warehousing company also stated that they are continuing to operate. Once all the LME standards have been met, they should be approved by the end of this year. As early as October 2002, LME executives in Beijing announced plans to set up metal delivery warehouses in China. In February of this year, Paul Wilkes, a senior trader at LME serving the Sempra Metal Group, revealed that the LME Delivery Warehouse Committee is working closely with the Sempra Group to prepare certain LME delivery warehouses in Shanghai or other parts of East China. However, he did not disclose the exact timing of the delivery of these delivery plans. Most people believe that this move by the LME is a major measure to deepen service and increase competitiveness and will constitute a direct competition for the Shanghai Futures Exchange. Although according to relevant regulations, only a dozen large state-owned enterprises currently qualify for outsourcing protection, a substantial number of domestic companies or individuals are actually conducting overseas transactions through various means, in particular, offshore outsourcing, which is in futures. The "secret" known to adults in the industry. Among them, most of the arbitrage transactions between Shanghai and Shanghai in Shanghai and Shanghai inter-city arbitrage. There are three reasons: First, the market capacity of LME and Shanghai Futures Exchange is large, which can facilitate the free entry and exit of funds; Second, the establishment of delivery varieties, the goods in the two places can be freely circulated; Third, the spot trading channels are unobstructed, and the futures spot is closely linked. Make the spread quickly return. At the same time, the long history, 24-hour continuous global transactions and relatively sound supervision make LME more fluid and more trustworthy for investors. The value-preserving function of the trader in the LME is more easily realized, and the commission cost of the hedging transaction is also close to the domestic level. Once LME establishes delivery warehouses in the country, it is convinced that more investors will flood into LMEs to engage in hedging, arbitrage or speculation. On the other hand, it has been more than eight years since the state banned foreign disk agency in 1994. In the face of a joint domestic and foreign market, as well as a huge import and export business, the domestic futures industry is increasingly confused. In recent years, the development of technology, especially the realization of online transactions, has created an offshore Chinese capital that will take full advantage of China’s market barriers and make profits through obstacles that can be achieved through appropriate means. The metal market is undoubtedly the pilot target. . They are infiltrating into the futures market through various means, and make full use of capital advantages and channel advantages to arbitrage, effectively forming a profit squeeze for domestic traders. LME's establishment of a delivery warehouse in the country is undoubtedly a step forward in its expansion in China. It is also good for China, but there are still a lot of people in the industry who believe that the positive impact of LME's move on China is still greater. “This is definitely a good thing,†said Lin Hui, a mid-term analyst in Shanghai. “Although China is the second largest copper market in the world after the United States, the countries where LME has set up delivery warehouses in Asia are limited to South Korea and Singapore.†The establishment of delivery warehouses in China is not only a recognition of Shanghai copper in the international market, but also an approval of the Chinese metal market.†However, in terms of market conditions, she believes that the short-term impact is small, but the linkage between Shanghai and London will be further. Enhanced. Bi Sheng, copper futures analyst, said that LME’s move was not a competition for the previous period. Instead, he said, “This will lead to a better integration of the Shanghai metal futures market into the global trading system and pricing system, and will further promote the Shanghai Futures Exchange at a global level. Zhang Ronghui, China Minmetals Futures Department, said that LME has set up a transaction bank in China, making it easier for domestic related companies to import and export, as well as facilitating arbitrage transactions between the two cities. For the local government, C. Steinweg applied for renting warehouse at Shanghai Waigaoqiao to increase local fiscal revenue and expand employment, and for the entire country, it is also equivalent to increasing strategic reserves, such as during a force majeure event such as a war. The government can requisition the copper stocks of the delivery warehouse, and then compensate them, etc. Britain used LME's copper reserves in the UK's domestic delivery warehouses during World War II. The delivery warehouse was selected very strictly. Currently, the LME approved delivery warehouse has 400 Multiple, mainly distributed in 32 ports or regions in Europe, the United States, the Middle East and the Far East, etc. Different types of metals, Warehouses are also different, and some warehouses only allow the delivery of certain metals.For example, for copper, LME can deliver 75 warehouses, mainly in Europe and the United States, and in Asia, there are only South Korea and Singapore. Zhang Ronghui introduced that LME warehouses do not Being an exchange, the exchange is only responsible for approval and confirmation, and is not responsible for any other specific business activities.The specific business is handled by large international warehouse companies.In other words, LME does not own LME warehouses, nor is it responsible for day-to-day management and operation. It is not responsible for the profit and loss of the warehouse, but the exchange is responsible for approving the delivery address, warehouse companies and specific warehouses. Warehouse warehouse receipts that have not been approved by the exchange cannot be effectively delivered. The site of the LME warehouse, the warehouse itself, and the operating units are strictly regulated. The regulations and requirements, only if they meet the requirements, the Exchange will consider approving it as a LME deliverable warehouse and an LME warehouse operator.The country or area where a metal warehouse is located must be a net consumption area for that metal, with convenient trading conditions , a well-developed financial system, a sound legal supervision system, free trade free tariffs, and a stable political economy At the same time, LME's requirements for warehousing companies are also very strict, and warehousing companies that apply for operating delivery warehouses must engage in the trade, transportation, and warehousing of the metal industry for many years, have extensive experience and reputable reputations, and are generally large multinational international companies. It is necessary to have other hardware conditions, such as good storage facilities, rich professional knowledge, etc. LME has strict requirements for general warehouse companies to become LME warehousing companies and it is difficult to obtain approval.The famous warehousing company approved by LME at present is C. Steinweg, Metro International Trade Services, Henry Diaper Co., Ltd., Henry Bath, Pacorini (USA) Co., Ltd., Nordic Shipping Services, etc. Zhang Ronghui said that in recent years, some Chinese companies have made some efforts to set up the LME delivery warehouse in China, but the effect has been No. The establishment of LME warehouses in our country involves a wide range of procedures and the procedures are complex and need to take time. Currently C. Steinweg and Henry Bath have bonded warehouses in Shanghai, China, but they have not yet been approved by LME and cannot be used as LME deliverables. As an enterprise, if you want to apply for becoming a warehousing company of LME, you can apply to the LME board of directors through a brokerage company. However, at present, there are no enterprises in China that have made such attempts. What needs to be reminded is that the application will take time and effort, and it may be less effective than the end result. This is mainly related to the current environment in our country.
