Yang Yan, Senior Manager of Shanghai Clearing House, delivers her report of Centralized clearing of Shanghai Clearing House serves entity enterprises to be solid, strong and excellent

Ms. Yang resent her report mainly in the following four parts:

The first part is the introduction to the Shanghai Clearing House. In this section, Ms. Yang briefly introduces the Shanghai Clearing House, covering its development history, major achievements, business structure, and other aspects.

The second is about the Central Counterparty Clearing Business for Commodity Derivatives. The Shanghai Clearing House has launched 20 central counterparty clearing services covering industries such as shipping, black, non-ferrous, energy, chemicals, and carbon emissions. In this section, Ms. Yang provides detailed information on elements of chemical derivatives agreements, business processes, participants in chemical derivatives, margin and position limits, risk management systems, hedging applications, and the comprehensive platform for commodity derivatives services.

The third is the Commodity Spot Clearing Business. In June 2023, the Shanghai Clearing House cleared over a trillion yuan and introduced digital RMB clearing services. Ms. Yang details the business model, clearing entities, clearing products, business advantages, as well as the Clearing Pass supply chain financial services and digital RMB clearing services for commodity clearing in this section.

The last part is about their development plans. Ms. Yang outlines the development plans for commodity business at the Shanghai Stock Exchange: in derivatives business, advancing research and development of new products; in spot business, promoting quality upgrades and business innovation; while also exploring achieving linkage between futures and spot markets.