China’s financial markets regulator, the China Securities Regulatory Commission (CSRC), has announced plans to accelerate opening of the country’s futures market, according to an article published in the China Securities Journal on Thursday.
“The CSRC will push forward with plans to launch crude futures trading, and will work actively to introduce overseas investors into certain commodities markets in China, such as iron ore trading, CSRC’s futures supervision department,” said Reuters, referencing the article.
The CSRC says that it will work actively to introduce overseas investors into certain commodities markets in China, including for iron ore, in an attempt to deepen the nation’s capital markets.
As part of the plan, the CSRC said that it was also pushing forward with the introduction of crude oil futures, creating a rival contract to those traded in Chicago, New York and London.
It also announced that it would encourage Chinese futures exchanges to expand overseas, either through the establishment of offshore outlets or through acquisitions.
Chinese commodity futures have exploded in popularity in recent years, benefiting from tight capital controls and a lack of alternative investment opportunities in other asset classes.
The lift in trading volumes has also led to an influx of speculators, including inexperienced investors, resulting in wild intra-session swings in many commodities contacts.
Reuters has more here.