(Yicai Global) May 25 -- China will further open up its futures market to allow qualified foreign institutional investors to trade more kinds of derivatives, according to the vice chairman of the country’s securities regulator.
Attracting more foreign investors to participate in the pricing of China’s futures will make them more influential and provide companies with more accurate price signals, Fang Xinghai said at the 20th Shanghai Derivatives Market Forum held in the city today.
China has so far given foreign investors access to 23 types of futures, and QFIIs and renminbi qualified foreign institutional investors have access to 39 kinds of futures and options. QFIIs and RQFIIs are foreign institutions approved by Chinese regulators to invest in the Chinese mainland’s bond and equity markets.
At the forum today, the Shanghai International Energy Exchange, a branch of the Shanghai Futures Exchange, presented awards to 16 overseas brokerages for their outstanding contributions last year, including global giants J.P. Morgan Securities and Goldman Sachs International.
The China Securities Regulatory Commission will also focus on the operation of basic futures such as key agricultural products, energy and strategic minerals, Fang said. Trading rules for these contracts will be improved based on market changes and industry demand, he said, adding that trading will also be made more convenient, thus attracting more investors.
The Shanghai market will further diversify the futures for metals, energy, chemical products and other fields, while developing those for new materials as well as energy conservation and environmental protection to advance the economy’s green transition, Wang Ping, deputy secretary general of the city government, noted at the forum.
Editors: Dou Shicong, Tom Litting