Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

SHFE Calls for Opening Commodities Futures to Overseas Traders

March 11 (Bloomberg) -- China should accelerate opening commodities futures to overseas investors and detail regulations allowing domestic firms to trade raw materials contracts on bourses abroad, Shanghai Futures Exchange Chairman Yang Maijun said in proposals to the National People’s Congress.

Government agencies including foreign exchange regulators and the tax bureau should use preparations already under way for crude oil futures trading to prepare similar policies allowing foreign investors to trade base metals, precious metals and natural rubber futures, Yang said, according to an e-mail from the exchange today.

Yang, a delegate to the annual congress, which began in Beijing last week, also suggested institutional and individual investors from abroad should enjoy preferential tax rates, according to the statement.

China introduced a Qualified Foreign Institutional Investor program in 2002, allocating quotas to non-Chinese funds that were initially restricted to trading stocks and bonds listed on exchanges. In July 2012, China allowed entry into the interbank market, which hosts 99 percent of the nation’s debt.

The SHFE is facing rising competition from the Hong Kong Exchanges & Clearing Ltd., which bought the London Metal Exchange last year and has plans to boost the LME’s activities in Asia.

Chinese companies are disadvantaged because they don’t have legitimate channels to access overseas commodities futures markets to hedge, today’s statement cited Yang as saying.

To contact Bloomberg News staff for this story: Helen Sun in Shanghai at hsun30@bloomberg.net

To contact the editor responsible for this story: Brett Miller at bmiller30@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.