The Review Panel of “Shanghai Nonferrous Metals Price Index (SMMI) Scheme”, composed of Professor Wang Defa from Shanghai University of Finance and Economics, Professor Zhang Meilin from Shanghai University, Zhang Rongfei, the Deputy Director of Institute of Statistical Science under Zhejiang Provincial Bureau of Statistics, and relevant leaders from Shanghai Hailiang Holding Group Co., Ltd. and Shanghai Sigma Metals Inc., evaluated the SMMI Scheme in Shanghai Swan Hotel on April 28th, with attendees from Department of Price Supervision of Shanghai Price Monitoring Center under National Development and Reform Commission (NDRC) and Shanghai Price Association. The following conclusions have been drawn by the Review Panel based on careful consideration and serious discussion.

1. The launch of SMMI is of great practical significance for the government to regulate the market, for enterprises to operate, as well as for investors to establish investment strategies. SMM prices released on www.smm.cn have been considered as authoritative and objective prices for market players from China’s nonferrous metal industry, which have laid a solid foundation for SMMI Scheme. Therefore, it is very necessary and timely to program SMMI.

2. SMMI is easy to operate and has important guiding significance and high application value based on scientific price index theory, actual conditions of China’s nonferrous metal markets, as well as on SMM prices which have been approved by market players; SMMI is also characterized by the application of cross-weighted method, which will be helpful to expand the application technology of statistical index and to improve China’s statistical index system.

3. The SMMI program is in line with index compiling principles and actual conditions of Shanghai nonferrous metal markets with regard to the choices of typical products, the determination of base period, prices in base period, prices in reporting period and weights, as well as index calculation, and SMMI is a kind of high-quality practical program with relatively high theoretical level and clear expression.

4. The SMMI information system includes data collection, auditing, calculation, query, analysis and publication, with rational structure, complete functions, high practical value, as well as a certain degree of flexibility and scalability, which comply with the requirements for index calculation and publication. SMMI also reflects SMM price trend truly and objectively.

5. SMMI Scheme is still under research and development, and new circumstances and demands will emerge inevitably during the implementation process. Thus, the Scheme still needs further improvement, timely adjustment based on price changes in Shanghai nonferrous metal market, advancement in cross-weighted method, in an attempt to reflect nonferrous metal price trend in domestic markets objectively and to provide a basis for the healthy functioning of Shanghai nonferrous metal market. In general, both analysis function and contents should be strengthened in the information system and publishing platform in an effort to improve the application value and market influence of SMMI.

The Review Panel believes the “Shanghai Nonferrous Metals Price Index (SMMI) Scheme” is a kind of high-quality research results and has achieved expected goals, and is able to be launched in accordance to this scheme.