What is Zhengzhou Commodity Exchange (ZCE)?

The “Zhengzhou Commodity Exchange” (ZCE) is one of China’s first commodity futures exchanges. ZCE offers a platform for trading futures and options on agricultural products and other commodities. It ranks among the top 10 commodity exchanges globally by trading volume. ZCE market data is made available to both domestic and international markets at the same time through outlets such as Reuters, Bloomberg, Shihua and IDC.

When was ZCE Established?

Zhengzhou has long been Asia's hub for trade and business. ZCE's history started in 1990 when it was established as a pilot exchange in China. ZCE was the first such market to receive regulatory approval by China's State Council, as a part of China's market reforms and integration into the global economy. ZCE aimed to facilitate commodity trading and give market players access to tools for risk management, price discovery, and speculation. Consequently, ZCE, which began as China's initial ventures into the futures market, has advanced over time to encompass a greater variety of items. Initially, it started out trading with only agricultural items. Then in the 2000s, it expanded to include energy, metals, and other commodities, and increased its trade volume.

Who are the Major Market Participants of ZCE?

Commodity producers, trading companies, industrial enterprises, financial investors and other financial institutions dealing in derivative products are among the ZCE market participants. Participants can hedge against price fluctuations, manage risk and optimize their trading activities by entering commodity futures contracts. In addition, ZCE provides a platform for international investors who want to access the Chinese market. These contribute to the trading volume of the exchange by increasing the liquidity and depth of the market.

What Commodities Does ZCE Allow Trading? What Are the Major Commodities Traded on ZCE?

ZCE facilitates futures and options trading in key sectors of the national economy. These sectors include agriculture, energy, chemicals, textiles, construction materials and metallurgy industries. Agricultural commodities such as cotton, sugar, wheat and corn are among the most heavily traded products. ZCE currently offers 25 futures products and 18 options products according to information provided on its web page:

• common wheat, strong gluten wheat, early indica rice, late indica rice, Japonica rice, cotton, cotton yarn, rapeseed, rapeseed oil, rapeseed meal, white sugar, apple, Chinese Jujube, peanut kernel, thermal coal, methanol, purified terephthalic acid (PTA), flat glass, manganese silicon, ferrosilicon, urea, soda ash, polyester staple fiber, paraxylene and sodium hydroxide (futures)

• white sugar, cotton, PTA, methanol, rapeseed meal, rapeseed oil, thermal coal, peanut kernel, paraxylene, sodium hydroxide, polyester staple fiber, soda ash, manganese silicon, ferrosilicon, urea, apple, Chinese Jujube and flat glass (options)