China Raises Margins to Cool Commodity Speculation
This article is for subscribers only.
China’s futures exchanges, where the world’s top four agricultural contracts are traded, are increasing margins as part of a wider government crackdown on commodity speculation and food prices.
Deposits to trade soybeans, soybean meal, soybean oil, palm oil, corn, polyethylene and polyvinyl chloride contracts will increase to 10 percent from as much as 7 percent on Nov. 29, the Dalian Commodity Exchange said today. The daily price limit rose to 6 percent from as much as 5 percent, it said. Dalian’s move follows similar measures by the Shanghai and Zhengzhou bourses.