(Yicai) Jan. 27 -- Nickel futures will become the first duty-paid non-ferrous metal futures product on the Shanghai Futures Exchange to be directly opened to global investors, according to a statement released by the exchange today.

SHFE is steadily advancing preparations for the opening of nickel futures and options, as well as options linked to TSR20 (technically specified rubber), low sulfur fuel oil, and bonded copper, a relevant SHFE executive said.

The China Securities Regulatory Commission recently issued a circular confirming nickel futures and options on SHFE as specified domestic products, and approved the Shanghai International Energy Exchange to register TSR20, low sulfur fuel oil, and bonded copper options as specified domestic products.

The move marks a key step in SHFE’s internationalization efforts. With the listing of the three new options, the bourse designed for energy derivatives will achieve full options coverage for its corresponding mature futures products.

Nickel has important strategic significance for industrial development and is an indispensable base metal for emerging industries. China is the world’s largest consumer and importer of nickel, as well as the second-largest producer, providing a solid industrial foundation for opening the nickel futures market.

Since its launch in 2015, SHFE’s nickel futures market has operated smoothly. Opening nickel futures and options to overseas investors will help enhance risk management in China’s non-ferrous metals industry, while attracting more domestic and international participants to join the price discovery process and use these instruments for risk management and global asset allocation.

Editor: Emmi Laine