On June 9, 2014, the Shenzhen Qianhai Shohua Precious Metals Trading Center, established with the approval of the Shenzhen Municipal People’s Government Finance Office and the Shenzhen Trading Place Supervision and Management Joint Meeting, and Ping An Futures Co., Ltd., a subsidiary of Ping An Group, signed a strategic cooperation agreement. This cooperation marks that the two parties have built a bridge between precious metals futures and spot markets for various participants in the precious metals spot trading market.
According to the cooperation agreement, Ping An Futures will regard Shohua Precious Metals Trading Center as an important partner. The two parties will carry out comprehensive and in-depth cooperation in risk hedging and arbitrage transactions around Shohua's existing trading products. In the future, Ping An Futures will provide professional and high-quality channel services to members and investors of Shohua Precious Metals Trading Center.
Wang Wenming, chairman of the Shohua Precious Metals Trading Center, said that Ping An Futures and the trading center have joined hands to open up cross-market investment channels between the precious metals futures and spot markets, which not only provides more investment channels and investment forms for various participants in the precious metals spot trading market, but more importantly, truly provides cross-market arbitrage opportunities, which helps member units and investors control investment risks and seize investment opportunities.
In the next step, Ping An Futures will combine the group's comprehensive financial advantages to provide more financial service resources for Qianhai Shohua Precious Metals Trading Center, such as using "hedging loan" business to help members and investors of Shohua Precious Metals Trading Center avoid spot position risks. In addition, Ping An Futures and Qianhai Shohua Precious Metals Trading Center will make full use of their respective resources to jointly carry out necessary futures and spot knowledge training for investors. The two parties will also share resources in terms of industry research and information services.
Industry analysts pointed out that this cooperation will increase market participation and liquidity and attract more investors to enter the market. It is undoubtedly a win-win situation for the entire precious metals trading market. Ping An Group's banking, insurance, futures, investment and other businesses are booming and have strong comprehensive financial advantages. The Shohua Precious Metals Trading Center is located in Qianhai, connecting Shenzhen, Hong Kong and Macao, and connecting with the international market. Both parties have very high-quality industry resources. The cooperation space brought about by this cross-border resource integration is huge and worthy of the market's expectations.
