On May 4, 2018, the iron ore futures officially implemented the introduction of overseas traders' business. The foreign traders participated in the active and internationalized rules and regulations system and were tested by the market. The introduction of overseas traders' business achieved a smooth landing.

On the one hand, foreign participants have a wide range of sources, but participation is limited. As of the end of August this year, more than 150 overseas customers from more than 10 countries and regions have opened accounts. However, the volume of transactions and positions is limited. The average daily turnover and positions of overseas customers account for about 2% and 1% of the total, respectively. The overseas expansion work needs to be further strengthened.

On the other hand, measures such as bonded delivery have been implemented smoothly, and overseas participation has become more and more convenient. In September 2018, the iron ore 1809 contract realized the first bonded delivery, and the overseas seller customer delivered 10,000 tons of PB powder to the domestic buyer's customer. This is the first time that an overseas trader has participated in the delivery of iron ore futures, and it is also the first attempt of bonded bulk delivery of bulk bulk goods in China. In August this year, the General Administration of Customs of China issued an announcement to further support the development of iron ore bonded delivery business. Since then, CITIC Metal and Cargill Investment have successfully completed the first-time cash-delivered bonded delivery business.

Regarding the opening up of the futures market, whether from the national strategic deployment, the experience accumulation of the futures market, and the regulatory experience, we are full of confidence and hope to attract more and more overseas participants into China through continuous improvement and innovation. The futures market is involved in the process of price formation.

Regarding the impact of foreign capital on the domestic market, I think this impact should be positive and positive. The futures market is a market that discovers and forms prices. The more diverse the market participants, the more realistic and representative the prices are. Different market entities must have different understandings and assessments of value. Introducing foreign investors can better improve the price signal and complement each other, which is actually beneficial to correcting and correcting. Therefore, don't worry too much about the negative impact of openness.

In the long run, iron ore futures prices must be formed by domestic steel companies, international mines, domestic and foreign traders and investment institutions to form a globally representative price, and internationally recognized and adopted. This is our unwavering efforts.