China’s commodity exchanges in Zhengzhou, Dalian and Shanghai open more futures, options to overseas investors
COMMODITIES POLICY & REGULATION
China’s commodity exchanges in Zhengzhou, Dalian and Shanghai open more futures, options to overseas investors
COMMODITIES POLICY & REGULATION

China’s commodity exchanges in Zhengzhou, Dalian and Shanghai open more futures, options to overseas investors

 

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Investors under the Qualified Foreign Institutions Investors (QFII) and Renminbi Qualified Foreign Institutional Investors (RQFII) will be able to trade futures contracts of crude oil, technically specified rubber (TSR) 20 , low-sulphur fuel oil and international copper as well as crude oil options on the Shanghai International Energy Exchange, effective immediately, according to a statement released by the Shanghai bourse on Friday.

The Qualified Foreign Institutional Investors (QFII) and RMB Qualified Foreign Institutional Investors (RQFII) are China’s two main inbound investment schemes introduced in 2002 and 2011 respectively to encourage foreign participation in its financial markets.

These qualified foreign investors will be also able to trade futures and options of soybean, soymeal, soybean oil, palm oil, iron ore, linear low density polyethylene (LLDPE) on the Dalian Commodity Exchange, as well as futures and options of PTA, methanol, sugar, rapeseed and polyester staple fiber on the Zhengzhou Commodity Exchange, effective immediately, according to two separate statement released by the two bourses on Friday.

The exchanges’ announcement came after China’s top securities regulator reiterated that the country will further open up its capital market to overseas investors with multiple measures such as expanding commodity and financial futures products available to overseas investors, said Fang Xinghai, Vice Chairman of the China Securities Regulatory Commission (CSRC) said at a financial industry forum on Friday.

As of August 26, overseas investors’ equity in China’s stock index futures market stood at 31.76 billion yuan and their equity in China’s futures of crude oil, iron ore, PTA, technically specified rubber (TSR) 20, palm oil, international copper and low-sulphur fuel oil stood at 21.3 billion yuan, according to official data.