On 20 November 2019, Qianhai Mercantile Exchange (QME)’s first imported alumina warehouse warrant transaction was successfully conducted at the warehouse in Lianyungang Port.  This transaction marked a new breakthrough in the warehouse business model after QME implemented the factory warehouse business model and non-standardised business model and was the first time QME provided online trading, clearing and settlement services for imported alumina.

The warehouse warrants record the rights and obligations of both the stockholder/inventory holder and the warehouse keeper/warehousing custodian and are electronic proofs given by the latter to the former with the characteristics of being standardised and relating to goods with sound quality and high liquidity.

QME's warehouse warrants are highly credible electronic proofs created based on the characteristics of alumina spot market business.  Underlying these warrants designed by QME are not only strict third-party warehouse access standards and enhanced management of goods in the application and registration processes, but also extra protection provided innovatively in the form of warehouse warrant insurance.  Compared with traditional warehouse warrants, QME’s warehouse warrants have the advantages of avoiding transaction risks, strengthening product/inventory management, improving transaction efficiency, reducing transaction costs, and ensuring transaction security.  Given these advantages, many financial institutions will be able to provide QME’s warehouse warrants for pledging or financing purposes/QME warehouse warrants are acceptable to many financial institutions as collateral for financing purposes.

As the only trading platform in Mainland China that discovers prices based on actual alumina spot transactions, QME will focus on serving the needs of physical enterprises and promoting market functions such as pricing, risk avoidance, and financing services to create real value for customers.