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China sets stage for opening commodity futures to foreign investors -弹簧展-2015第十六届广州国际弹簧工业展览会-全球最大弹簧展会-巨浪展览-The 16th China(Guangzhou)Int’l Spring Industry Exhibition
1/7/2015 弹簧展- -全球最大弹簧展会- Spring Industry Exhibition |
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(Reuters) - China has published draft rules to allow foreign
investors to trade in some of the country''s commodities futures, potentially
paving the way for an imminent opening of a booming market as Beijing looks to
increase its sway on global commodity pricing.
China
is the top global consumer of raw materials and has some of the most liquid
commodities futures markets. Although trading firms around the world are eager
to access the country''s commodity exchanges, state restrictions on foreign
participation and currency flows have prevented the contracts from gaining
global prominence.
The
draft guidelines, issued by the China Securities Regulatory Commission (CSRC) on
Dec. 31, cover increasing the number of futures contracts open to foreign
investors, as well as operational procedures and cross-border legal
supervision.
The
CSRC said the Shanghai Futures Exchange''s crude oil futures would be the first
contract qualified foreign investors would be able to trade, adding that they
could participate via approved overseas or local brokerages. They may also apply
for direct trading licences with the bourse.
The
commission did not give details on other domestic futures contracts that would
be open to overseas players. It approved the launch of the long-awaited crude
oil futures contract last month.
The
pubic has been given until Jan. 31 to send feedback on the draft
regulations.
At
present, foreign companies have limited access to China''s booming commodities
markets. Companies are only allowed to trade via brokers after setting up a
locally registered non-financial unit, which requires a hefty amount of
registered capital.
The
lack of institutional investors has led to China''s futures markets being largely
dominated by retail investors, making it prone to speculative
trading.
Analysts said the move to bring in foreign players, especially
institutional investors, would help develop the sector and usher in
international practices.
China
is cautiously opening up its economy to market forces and liberalising its
financial markets.
Part
of that effort saw the creation of the Shanghai free trade zone and the launch
of the Shanghai Gold Exchange''s international bourse, allowing foreigners for
the first time to directly invest in the country''s gold market using offshore
yuan.
China
also opened up its equity markets in a landmark trading link with Hong Kong in
mid-November, which gives foreign and Chinese retail investors unprecedented
access to each of the two exchanges.
弹簧展-2015第十六届广州国际弹簧工业展览会-全球最大弹簧展会-巨浪展览-The 16th China(Guangzhou)Int’l
Spring Industry Exhibition
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