China is looking at allowing foreign investors to trade domestic crude oil and iron ore futures, as part of expanding its financial reforms.
With China now the largest consumer of several commodities, it has long sought to be a global price maker. Speaking in Shanghai recently Fang Xinghai, vice chairman of the China Securities Regulatory Commission (CSRC) said the commission is working actively on a plan to expand the participation of foreign investors in China’s financial futures markets.
Earlier this year Fang also said that Shanghai is likely to launch crude oil futures this year. The move would seek to draw international buyers and let the country maximize its global pricing power for the commodity.
CSRC regulators are also studying new futures such as pulp, hog and apple, and will allow commercial banks to participate in the treasury futures market.
