Market Bridge Consulting

  1. Development of China's Commodity Futures Market   Since 2010, the Chinese futures market had fast expanded with the launch of financial futures and Exchange-traded options. The derivatives market has entered a stage of comprehensive development from commodity futures to financial futures, from futures to options, from exchange-listed to OTC, and from domestic-investors-only to liberalized foreign investor trading.   Currently, China’s domestically listed futures and options cover 7 categories of finance, industrial metals, precious metals, chemicals, energy, black series and agricultural products, with a total of 91 varieties, including 64 commodity futures and 20 commodity futures options. Figure 1 Commodity Futures and Options in China Source: Galaxy Futures 2.    Commodity Futures Market 2.1 Market expansion In terms of time, China's commodity futures market has continued to expand steadily, and trading volume, open interest and trading value have all sh

　　Per the joint deliberations with the People’s Bank of China (PBC), the State Administration of Foreign Exchange (SAFE), the CSRC announced that, starting from November 1, 2021, commodity futures, commodity options, and stock index options will be added as eligible financial derivatives accessible to Qualified Foreign Investors, of which tradings in stock index options shall be limited for the sole purpose of hedging. 　　As an important measure to reform and open up domestic securities and futures market, broadening the investment scope for Qualified Foreign Investors will enable more efficient management of asset allocation and risk exposure, raising the attractiveness and global outreach of China’s capital markets to international investors. After years of steady development, the three classes of financial derivatives included in the upcoming addition have served their roles as effective financial instruments and established solid grounds to engage foreign traders. 　　Guided by the go

  Starting from October 18, 2021, government bonds will be accepted by Shanghai International Energy Exchange (INE) as margin collaterals. In compliance with the   Clearing Rules of the Shanghai International Energy Exchange , INE hereby notifies the relevant issues as follows: 1. Processing Time The application for the posting or withdrawal of government bonds as margin collaterals shall be submitted to INE before 2:30 pm on each trading day. Detailed processing time is as follows:   2. Fees For government bonds posted as collateral, the fee rate is 5 basis points (annualized). Fees will be calculated based on the daily value after haircut and collected monthly. For China derivatives market access and more market information please contact sherry_ustc@163.com For more China derivatives market news please visit   FangQuant