China’s commodity exchanges to open to foreign investors – China’s latest business and technology news

Once a strictly regulated market only reserved for domestic investors, China’s commodity exchanges are gradually opening up to foreigners as part of an effort to increase the influence of the yuan — global benchmarks on commodities are still mostly priced in dollars. In addition to the expansion of investments permitted for foreign investors, Chinese exchange operators also plan to add futures contracts for key raw materials, including apples and cotton yarn, as well as options on copper and corn, according to Bloomberg.

Progress has been slow this year. In March, Dalian published a hog-price index, indicating a start of trading in related futures. In early April, Zhengzhou Commodities Exchange said that it had finished a draft contract design for apple futures. However, breakthroughs on real changes are rare, as the China Securities Regulatory Commission has yet to approve any new futures contracts.

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