Corporate Information

Shanghai Free Trade Zone Chemicals International Exchange Passes Acceptance Check2015/10/29

 

As one of the eight trading centers of the first free trade zones, Shanghai Free Trade Zone Chemicals International Exchange got the confirmation letter for approving the platform preparation from the China (Shanghai) Pilot Free Trade Zone Bulk Commodity Spot Market Review Committee on January 23, 2015, and then it started the busy preparation work. On July 22, 2015, it submitted the materials and applied for acceptance check.

 

The review committee consisted of various government departments and enterprises of the reviewing originator and director of Economic Commission of Shanghai Zhang Xinsheng, Shanghai Business Committee, FTA Administrative Committee Gold Trade, Shanghai FTA Customs Group, Shanghai Equity Exchange, Deloitte Enterprise and Tachen Law. At 14:00 on October 22, the committee visited Shanghai Free Trade Zone Chemicals International Exchange (hereinafter referred to as the Trading Centre) (www.shicx.com) for acceptance check.


On the site of acceptance check, He Wei, Director of Trading Center, reported the detailed preparation work from five aspects, i.e. legal subject, trading rules and specific measures for the administration, formal cooperation agreement related to the market participants, trading systems and computer hardware and software support, business premises and room facilities. Then, chief IT operation officer of the Trading Center illustrated the trading system operation for leaders and experts.

 

The review committee spoke highly of the site report and preparatory work, especially comprehensive measures for risk control in trading center, which was well received in the committee members.
 
It’s known that trading center was launched by Etong E-commerce (Shanghai) Co., Ltd (hereinafter referred to as Shanghai Etong) (www.enmore.com) and Shanghai Chemicals Market Management Co. Ltd (hereinafter referred to as the Shanghai Shcem) (www.shcem.com). Shanghai Etong and Shanghai Shcem have more than ten years of industry experience and rich resources in the fields of both liquid and solid chemicals, achieving the leading position in the domestic and Asia in their respective fields. They took this opportunity to integrate resources and strengthen the service. Trading Center has been equipped with the conditions to lead the characteristic chemical element market in China and Asia.

 
Zhang Yu, Chairman of Trading Center said there is a huge risk in the process of trading because of the lack of credible third-party institutions in the traditional commodities trading. The Trading Center preparation followed the principle of “4 separations”. It can finish the freeze, liquidation and transfer of cargo and funds through the clearing house; it can realize the seamless joint with free trade commodities, warehousing and customs through Trading Center. It can check and publicly display the warehouse receipt information, which ensures the reality, effectiveness, uniqueness of warehouse receipt, eliminating the possibility of false warehouse receipt and repeated use of the warehouse receipt. To minimize the risk of trading capital and goods, after the Trading Center goes online, it will actively practice the “Internet commodities” innovative thinking. The future goal is to realize demand, trading and pricing to be in China and service to be in the national wide, striving for building Trading Center into the most important chemicals trading platform in the Asia-Pacific region.

... Back