On Nov. 23^rd, the opening ceremony of The National Commodity Warrant Registration Center (NWRC) has been launched in Pudong New Area, Shanghai. Leaders attending the ceremony include: Zhu Zhisong, member of the Standing Committee of theCPC Shanghai Municipal Committee and the Secretary of Pudong New Area; Li Hongfeng, Secretary of the Party Committee and Chairman of the Board, China Logistics Group Co., Ltd; Hang Yingwei, Deputy Secretary-General of Shanghai Municipal Government and Director of Pudong New Area, etc.

The NWRC program has been promoted by the Government of Pudong New Area, together with Shanghai Futures Exchange. It has been initiated by nine cooperative enterprises, viz.China Logistics Group Co., Ltd; Sinotrans Ltd.; COSCO SHIPPING Supply-Chain Logistics Co., Ltd.; Shanghai International Port (Group) Co., Ltd.; Shandong Port Group Co., Ltd.; Zhejiang Provincial Seaport Investment & Operation Group Co. Ltd.; Xiamen ITG Group Corp., Ltd.; Shanghai Lingang Economic Development (Group) Co., Ltd. and Shanghai Waigaoqiao Free Trade Zone Development Co., Ltd.

NWRC is committed to building a modern national system of warrant registration and circulation, providing centralized registration and searching service nationwide in three fields: commodity data management, warrant service powered by Blockchain technology and market information disclosure.

As a kind of chattel, it’s difficult to deal with ownership confirmation, evaluation, regulation and disposal of commodities, which have long been a sore spot for companies in trading business.The NWRC is to promote interconnections, exchanges, mutual recognition and sharing of warrant information between regions, deeply binding the information flow with cargo flow. Risks like “false warrant” “repeated pledge” and “multiple selling of the same batch of goods” are expected to be mitigated, hence further enhancing market discipline and restrictions, improving efficiency of warrant management, reducing financing cost of transactions, improving market environment and integrity system, facilitating finance service industry, and guaranteeing safety and efficiency of commodity circulation.

Xi jinping, the General Secretary of CPC Central Committee, has paid great attention to the development of modern circulation and finance service industry, making a series of remarks onbuilding modern circulation system and strengthening the capability of finance service in serving real economy.

The 20^th National Congress of CPC has made a series of strategic arrangements like “building a unified big market nationwide” “constructing a highly efficient and smooth circulation system” “focusing upon upgrading resilience and safety of industrial- chain and supply-chain”,etc.

The CPC Central Committee and the State Council have jointly launched The Guidance of Supporting Higher Level of Reform and Opening up of Pudong New Area to Build a Modern Socialist Pilot Area (the Guidiance), explicitly making requirements of trying to establish a national warrant registration center.

The start of NWRC is the response to the spirit of the 20th National Congress and the Guidance, as well as the concrete action of providing service to the establishment of a national unified market. A new chapter of high quality development of commodities has been turned.

With the purpose of “Unified registration, Digital regulation, Spot&Futures combined, Merging & Interconnection between industries”, the Finance Department of the Government of Pudong New Area together with Shanghai Futures Exchange have signed cooperative framework agreement with the above-mentioned nine companies, establishing a deep cooperative mechanism. With the help of NWRC, relevant parties are expected to make full use of their respective advantages as leading warehousing companies, large-size ports, high quality trading companies and free trade zones at national level. Thus, the functions and supporting policies can be consolidated. A warrant registration system featured unified standard, safety, high efficiency and national coverage will be established.

Li Hongfeng, Chairman of China Logistics Group, said, the NWRC is a holistic and strategic move of implementing the Xi Jinping thought on socialism with Chinese characteristics for the new ear, and the spirit of the 20th National Congress. It is a cooperative achievement between government & enterprises, central state-owned enterprises & provincial and municipal government, banks & enterprises. It’s also a key support for synergetic development between finance industry and logistics industry.

As a central-stated owned enterprise of integrated logistics, China Logistics Group will bear in mind what the national concerns are, working with other parties to provide service for companies in manufacturing & consumption, commerce & trade, along the industrial chain.Together, to promote virtuous circulation between finance and real economy, enhance credit system of material commodities, build a professional, efficient and reliable NWRC withglobal influence.

With the set-up of NWRC, Pudong New Area is expected to become the central node of domestic circulation and the strategic connecting point of dual circulation, thus contributing to the construction of a modern socialist country in all respects.

Wang Fenghai, Deputy Secretary of the Party Committee and the General Manager of Shanghai Futures Exchange, pointed out that the futures market is connecting commodity-related real economy with finance, while the warrants are connecting spot market with futures market. The credibility of warrant has been a sore spot for market development, for warehousing and logistics industry and for building a unified market nationwide.

With the help of Big Data, Blockchain technology and the Internet of Things, NWRC will gradually match warrant with warehousing cargos, solving problems of commodity management & control, unclear title of goods, non-transparent information, etc. Hence, the credibility of warrant could be upgraded and the supply-chain service further improved, realizing survival of the fittest.

Shanghai Futures Exchange will make full use of its advantages, guiding companies in warehousing and logistics industry to improve risk management by technology, jointly creating market environment that sticks to market rules while seeking innovation, hence promoting healthy and prosperous development of logistics industry. Under the Law of Futures and Derivatives and the Guidance, good practices and experience are expected to be written into laws and regulations, helping legislative improvement in related fields.