(Yicai Global) Sept. 22 -- The China Securities Regulatory Commission (CSRC) will push forward deregulation of the agricultural commodity futures market for foreign investors so that the country can have a greater influence and a bigger say in the global market, Fang Xinghai, a vice chairman at the commission, said at a financial forum today.
Fang discussed the CSRC’s plans to open up the futures market using soybean futures as an example, Shanghai Securities Information reported.
China is the largest producer and consumer of non-genetically modified soybeans in the world, as well as the number one importer of genetically modified soybeans (over 85 percent of GM soybeans in the country are imported), so it is very important to increase China’s pricing power on the international soybean market and ensure reliable supplies, he said.
The Dalian Commodity Exchange has introduced soybean futures contracts I and II, he said. Next, taking advantage of opportunities arising from the release of the two futures products, the CSRC will focus on enhancing China’s status in the global soybean trade industry chain, reducing import costs and safeguard national food security, giving full play to the functions of the soybean futures market.
China will work to step up the internationalization of the soybean futures contract I, and create a pricing center for NGM soybeans traded worldwide. The country will issue policies to attract foreign industry clients and investors to the domestic futures market and to build on China’s global influence, he said. Existing favorable national policies should be utilized to facilitate trading of foreign GM soybeans in the domestic market, Fang said.
Giving foreign investors access to the futures contract II market is key to the development of a global pricing center for GM soybean futures, he said. China will make efforts to open up the contract II market to foreign traders, support major grain and oil enterprises to acquire soybean warehouses, ports and other logistic facilities in America, and facilitate construction of warehouses for soybean futures contract II deliveries abroad; track shipping with big data and internet technologies to ensure food safety; and promote yuan-based pricing and payment settlement for soybean imports.
The commission will also improve existing mechanisms for introducing new agricultural futures to expedite the product release process, and continuously refine existing futures products; roll out ginger, pig, apple, date and potato futures; and step up the introduction of soybean, corn and cotton options, Fang said.