China Opening Crude Futures to World in Quest for Influence
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China plans to allow foreign investors to trade its proposed crude futures contract as the world’s second-largest oil consumer seeks to bolster its influence in determining benchmark prices.
The Shanghai International Energy Exchange will allow foreign investors to transact through agents that have net capital of at least 30 million yuan ($4.8 million) or the equivalent in foreign currency, according to draft rules published on its website on Wednesday. It will accept foreign-denominated funds, standard warehouse receipts, treasury bonds and securities with “stable value and high liquidity” as collateral.