Good News on Listing | Frost & Sullivan Assists Nanhua Futures Co., Ltd. in Successful Listing on the Hong Kong Stock Exchange (2691.HK)

Nanhua Futures Co., Ltd. (hereinafter referred to as 'Nanhua Futures') was successfully listed on December 22, 2025. The company issued a total of 108 million H shares, of which 90% were international offerings and 10% were public offerings. The maximum selling price per share was HK$16.0, raising a total of up to HK$1.72 billion.

During the process of listing in Hong Kong this time, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support and highlight the issuer's competitive advantages, assisting the issuer, investment banks and other intermediaries in completing the writing of relevant parts of the prospectus (such as overview, competitive advantages and strategy, industry overview, business and other important chapters), helping the issuer complete communication with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and providing assistance to the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange, etc.

Frost & Sullivan has always been a leader in helping companies go public in Hong Kong. According to LiveReport's big data (statistical data as of September 30, 2025), from January to September 2025, and over the past 12 and 36 months, Frost & Sullivan provided listing industry advisory services for 47 (market share 72%), 62 (market share 69%), and 162 (market share 70%) Hong Kong stock listings respectively, ranking first in terms of number, with rich industry experience and communication skills with regulatory authorities, exchanges, investment and financing institutions, and various related organizations.

• The company is one of the first batch of companies established in China's futures industry;

   

• The company became the first futures company in China to list on the A-share market in 2019;

   

• The company became one of the first Chinese futures companies to establish branches in Hong Kong in 2006;

   

• In terms of exchange membership qualifications, the company is one of the firms with the broadest clearing network among Chinese futures companies;

   

• In 2021, 2022 and 2023, the company's forward and spot trading risk management system, Shenghua Financial Derivatives Comprehensive Platform and integrated investment research and production service platform were respectively awarded by the People's Bank of ChinaFintech Development AwardThird Prize, Second Prize and Third Prize;

   

• The company was awarded the title of Best Digital Transformation Futures Brokerage Company for 2023 and 2024 by Futures Daily, and in 2023, it was recognized as an Outstanding IT Service Futures Company by Securities Times and Brokerage China.Junding Award;

   

• The company is led by Dr. Luo Xufeng, the chairman, who has over 30 years of experience in the futures industry and has been awarded the title of 'Best Leader of Chinese Futures Companies' multiple times.

   

• Ranked first among Chinese futures companies in terms of overseas revenue for 2024,

The Chinese futures market is the world's largest commodity futures market, covering agriculture, energy, metals, and other sectors, with more than 140 products serving 41 industrial fields. Market participants in China's futures industry refer to financial institutions and service institutions engaged in futures contract trading and related businesses, mainly including futures exchanges, futures companies, clearing companies, etc. Their main business covers services such as futures trading, settlement, delivery, and risk management.

The expansion of China's futures market is driven by multiple key factors. The introduction of a variety of futures products (including financial derivatives and emerging assets) has increased market participation across various industries. Enterprises are increasingly using futures to hedge against price fluctuations (for example, agricultural companies manage input costs, and metal producers secure output prices), thereby bringing in large amounts of capital and strengthening risk management functions. Institutional investors such as securities firms, asset managers, and hedge funds are using futures forhedgingArbitrage and portfolio allocation enhance market liquidity and depth. At the same time, an increasing amount of financial knowledge and more user-friendly trading platforms encourage retail investors to participate, further boosting liquidity. Product innovation, corporate hedging, institutional strategies, and retail client participation together form a powerful synergy, supporting the continuous development of China's futures market.

China's futures trading volume from 2020 to 2029 (estimated) (by exchange

China's futures trading volume from 2020 to 2029 (estimated) (by exchange

From 2020 to 2024, the total client equity in China's futures market increased significantly from RMB 824.7 billion to RMB 1.5387 trillion, with a compound annual growth rate of 16.9%. Government stimulus and support policies boosted market confidence and trading volumes. New trading mechanisms and products attracted more participants by providing risk management and portfolio diversification tools. Regulatory support (such as strengthened regulation and encouragement of innovation) promoted the healthy development of the market. From 2024 to 2029, the total client equity is expected to increase to RMB 3.5793 trillion, with an expected compound annual growth rate of 18.4%. The intensification of external uncertainties triggered significant fluctuations in commodity prices, which led to an increasing demand for risk management solutions among enterprises, as evidenced by the rising usage rate of hedging tools across industries. The government's guidance and promotion aimed at maintaining market stability will further boost market growth.

Total Client Equity in China's Futures Market from 2020 to 2029 (estimated)

From 2020 to 2024, the total revenue of China's futures market increased from RMB 35.3 billion to RMB 41.3 billion, with a compound annual growth rate of 4.0%. Stimulated by government policies, the economy grew steadily, boosting trading volumes. New trading mechanisms and products attracted more investors. Regulatory support (including supervision and innovation incentives) enhanced market confidence. Looking ahead to 2024 to 2029, the total revenue of China's futures market is expected to increase from RMB 41.3 billion to RMB 53.5 billion, with a compound annual growth rate of 5.3%. The continuous economic growth, coupled with the expansion of the technology industry and investors' increasing interest in the stock market, will further drive futures trading. Technologically, advancements such as the application of more advanced artificial intelligence in trading will improve market efficiency and attract more participants. China's futures market has achieved diversified development by expanding the variety of contract listings that are aligned with international standards. Driven by enhanced product investability and improved hedging efficiency, it has attracted more international investors to participate. The phased relaxation of QFII quotas and the simplification of cross-border collateral rules will lower the entry barriers for global institutional participants, directly stimulating trading liquidity.

Total revenue of China's futures market from 2020 to 2029 (estimated) (by business segment)

Based on the background of controlling shareholders, futures companies in China can be divided into two categories: financial institution affiliated futures companies and non-financial institution related futures companies. Financial institution affiliated futures companies have close relationships with financial groups such as securities companies and banks, or belong to the same financial group. They can share customer resources, financing channels, and financial license advantages to provide comprehensive financial services to clients. Non-financial institution related futures companies include independent futures companies and futures companies controlled by large entities. They possess their own advantages, including independent decision-making power and operational vitality, as well as a deeper understanding of the industry and sectors.

In terms of total revenue for 2024, China's leading futures companies are mainly affiliated futures companies of financial institutions. In 2024, in terms of total revenue, the company ranked 8th among all futures companies and 1st among all non-financial institution-related futures companies, with total revenue of RMB 57 billion. In 2024, in terms of brokerage commission income, the company ranked 16th among all futures companies and 1st among all non-financial institution-related futures companies, with total revenue of RMB 500 million.

2024 Ranking of Chinese Futures Companies (by Total Revenue)

Growth in real economy demand: With the transformation and upgrading of China's economic structure, enterprises have significantly increased their demand for risk management. The futures market provides hedging tools for enterprises to cope with price fluctuations in the metal, agricultural products, and energy sectors. The overseas expansion of Chinese enterprises has enhanced global industrial integration and international competitiveness. This globalization has also promoted financial innovation in cross-border risk management, strengthened multilateral cooperation in green and digital transformation, and enhanced the resilience of domestic and global economies.

Continuous diversification of products: The Chinese futures market continuously introduces new trading products to meet diverse needs. Derivatives such as options and futures enrich investment strategies, while the application of financial technology improves trading efficiency, risk management capabilities, and market transparency.

Policy Support and Regulatory Improvement: The government attaches great importance to the futures market and has introduced laws and policies such as the 'Futures and Derivatives Law' to provide legal protection for the market. Regulatory authorities have improved their regulatory framework, promoted market standardization and transparency, and enhanced investor confidence.

Accelerating the internationalization process: China's futures market is gradually opening up to the outside world. Some products have attracted overseas participants, and their influence on international commodity prices has also increased. This has attracted more international participants, deepened cooperation with international exchanges, and promoted market connectivity.

Enhancing the ability to serve the real economy: In the future, China's futures market will provide a variety of risk management tools (such as hedging) and innovative financial products to help enterprises in industries such as agriculture, energy, and chemicals cope with price fluctuations and improve operational stability. This trend is not only reflected in the diversification of futures products and the optimization of trading mechanisms but also in the deep integration with the real economy. It helps enterprises reduce costs and improve efficiency, thereby promoting high-quality economic development.

Accelerate the internationalization process: The Chinese futures market will further open up to overseas investors and promote the internationalization of more futures products denominated in Renminbi (such as crude oil, iron ore, etc.). This trend will enhance China's voice in global commodity pricing, attract international capital participation, and improve market liquidity and influence.

The widespread application of financial technology: Technologies such as artificial intelligence and big data will be widely used in areas such as trading, clearing, risk control, and supervision. The aim of this move is to improve market operational efficiency, reduce transaction costs, strengthen risk management and supervision capabilities, and promote the widespread application of intelligent services such as algorithmic trading and consulting.

Promote green finance and sustainable development: Development trends include launching environmental-related futures products (such ascarbon emission rightsGreen electricity, etc.), to promote the application of relevant principles in the futures market. This move helps to achieve the country's 'dual carbon' goal, promote green economic development, and meet the market's demand for sustainable investment tools.

The major futures exchanges in North America include the CME Group andIntercontinental Exchange(ICE). The Chicago Mercantile Exchange Group is the world's largest derivatives exchange, offering a wide variety of futures and options products, such as Standard & Poor's 500 index futures, gold futures, and crude oil futures. Intercontinental Exchange focuses on energy, agricultural products, and financial derivatives trading, and its Brent crude oil futures and natural gas futures have significant influence globally.

In recent years, the trading volume of North American futures markets has continued to grow. From 2020 to 2024, the total number of contracts increased from 12.9 billion to 19.8 billion, with a compound annual growth rate of 11.3%. It is expected that from 2024 to 2029, the total number of contracts will further increase to 32 billion, maintaining a compound annual growth rate of 10.1%. The main driving forces for such growth include intensified market volatility and increased participation from institutional and retail investors.

Looking ahead, the North American futures market is expected to continue growing. Advances in high-frequency trading and automation technology, institutional demand for interest rate and commodity hedging, as well as retail investors diversifying their investments through commission-free platforms, are all expected to drive such growth.

Total North American futures and options volume from 2020 to 2029 (estimated)