Revaluing the Commodities Sector

Senior banker Deng Weibin kicked off this semester’s VINS-TCFA lecture series on Wednesday by sharing his observations on global and Chinese commodity markets with finance enthusiasts at NYU Shanghai.

In a one-hour keynote speech, Deng, Executive Director and Business Manager at Global Markets with BNP Paribas (China) Limited, explained the expansion and contraction of international banks in the global commodity markets during the last decade while discussing the past, present and future of commodity business models and functional setup.

“We have just experienced a very impactful market cycle,” Deng said. “Revenues of the global commodity market peaked at roughly $20 billion in 2008, and started to shrink drastically thereafter, with this year’s forecast at around $4.3 billion.”

Deng attributed the downturn to strengthened regulations over banks following the outburst of global financial crisis in 2008, saying that the prospect of global commodity market hinges on whether there will be a new round of deregulation in the next decade.

Deng offered his insight on the China commodity market and its opportunities for both business and career. With expertise in various functions including operations, product controls and business management with international banks, Deng has helped BNP Paribas set up, over the past few years, a commodity trading arm in the Shanghai Free Trade Zone.

“Enormous opportunities will emerge along with the internationalization of the Chinese currency. As global investors participate in the allocation of China’s assets, the market will become more transparent and balanced by eliminating bad assets and speculative activities,” Deng said.

Co-organized by the Volatility Institute at NYU Shanghai (VINS) and the Chinese Finance Association (TCFA), the lecture series will feature senior industry insiders and distinguished scholars at the end of each month, according to Professor Zhou Xin, Executive Director of VINS.