Editorial: the role of supervision should be brought into full play to ensure supply and price stability of bulk commodities

Recently, commodities have been named at the executive meeting of the State Council continuously, and the high frequency fully illustrates the existing and potential impact of commodity price fluctuation on the economy.

In the statements of the standing meeting of the State Council and relevant regulatory departments, we can see an important factor that influences the fluctuation of commodity prices: monopoly and hoarding odd and excessive speculation, which disturbed the normal production and marketing cycle and contributed to the rise of commodity prices. Next, strengthening supervision will become an important work of commodity supply and price stability.

First of all, the above-mentioned actions have been promoted by the high-level and regulatory authorities.

At the executive meeting of the State Council on May 19, it was pointed out that in response to the price fluctuation of commodities, we should further strengthen the linkage supervision of spot market in the future, take targeted measures in time to investigate abnormal transactions and malicious speculation. Meanwhile, we should strictly investigate and punish the behaviors of monopoly agreement, spreading false information, and raising prices, especially hoarding strange things, and make public exposure.

On May 23, the joint meeting of five departments, including the national development and Reform Commission, the Ministry of industry and information technology, SASAC, the General Administration of market supervision and reform, and the CSRC, pointed out that there were many aspects reflecting excessive speculation, disrupting the normal production and marketing cycle, and promoting the production of commodity prices.

China is an important import country of global commodities, and it is greatly affected by the fluctuation of commodity prices. At present, there is concern whether the rise in commodity prices will be transmitted to CPI. In fact, there are signs of this. Some corn oil producers have reported that in recent months, with the price of commodities rising, corn prices have risen by more than 30%, and enterprises have to adjust the price on the end products. To deal with the price fluctuation of international commodities, we must first achieve that the domestic market entities cannot be confused or thrilled.

This is the second point to say that all kinds of market subjects of self-discipline and strict regulatory measures.

At the meeting of the above five departments, the key enterprises with strong market influence in iron ore, steel, copper and aluminum industries, as well as iron and Steel Industry Association and non-ferrous metal association, were jointly discussed. The key enterprises and relevant associations were required to jointly maintain the normal market order from the overall situation awareness and legal awareness. In addition, the previous period, big business and Zheng business offices have "taken measures to cool down", and to curb speculative trading space by implementing the measures of holding limit and increasing the ratio of trading margin.

If this is more about self-discipline, there are also sharp swords to strengthen supervision and severe punishment.

The executive meeting of the State Council on May 19 stressed that it is necessary to resolutely crack down monopoly and hoarding strange behaviors in accordance with the law and regulations and strengthen market supervision; The five departments meeting also pointed out that the next step is to closely track and monitor the price trend of commodities, strengthen the linkage supervision of commodity futures and spot market, and "zero tolerance" for illegal acts.

Third, we should strengthen the construction of laws and regulations to form a long-term mechanism to deal with the fluctuation of commodity prices.

Recently, the national development and Reform Commission issued the notice on the action plan for deepening the reform of price mechanism in the period of the 14th five year plan, which clearly stated that it is necessary to strengthen and improve the price control, to deal with the price changes of iron ore, copper, corn and other commodities, to put forward comprehensive control measures and suggestions in time to strengthen the market expectation management.

More importantly, we should strengthen the legal construction of commodity trading including futures. As of May 28, the Futures Law of the people's Republic of China (Draft) has concluded the stage of soliciting opinions from the society, and will be promulgated and implemented in a short time after the amendment and corresponding voting procedures. The law will make positive contributions to improving the commodity futures regulatory and risk control system and in stabilizing price and supply. At the same time, in the fight against illegal acts, this law also greatly increases the amount of administrative penalty and damages, which will increase the cost of illegal acts in futures market.

In short, through a series of measures recently taken, including the adjustment of commodity prices by the regulatory authorities, the industry response to stable price protection, financial institutions restraining speculative control risks, etc., commodity prices have stabilized, but there are still many work to be done in the face of complex international situation. Among them, since we are the largest importer of commodities, we need to stabilize our feet. We must have our right of speech. The relevant market entities can not reach monopoly agreements, spread false information and boost prices, so as to boost the tide. Since the standing meeting of the State Council stressed that the regulatory authorities have made clear their opinions many times, they believe that the punishment cases for illegal and illegal acts will soon appear. This is a high voltage line, and the market participants should be treated with special care.