(Yicai Global) May 26 -- China is planning to open up its futures markets to foreign investors, said China Securities Regularly Commission Chairman Fang Xinghai yesterday, with the aim of becoming the global futures pricing center.
China will start by offering crude oil, iron ore and natural rubber futures as the first step in opening up the domestic futures markets to foreign investors, Mr. Fang said. China is not daunted by the risks that may be brought along by foreign investors, he added.
China is the biggest future trader in the world, a position it has held for the last five years. CNY68 trillion (USD10.37 trillion) of futures was traded in the first four months of this year and daily futures trading volume last year averaged almost CNY1 trillion (USD152.54 billion), accounting for approximately 20 percent of the global total.
There are currently three futures exchanges in China, namely the Shanghai Futures Exchange, Zhengzhou Commodity Exchange and Dalian Commodity Exchange.