The Shanghai Futures Exchange (ShFE) unveiled 34 draft proposals aimed at opening China’s domestic futures markets to overseas investors and brokers, part of a broader push to internationalise the renminbi.
The move could reshape global metals trading and challenge the dominance of the London Metal Exchange, as China is the world’s largest industrial metals consumer.
Key Points:
- Proposals include direct access for foreign brokers and the ability to post margins in foreign currencies
- The plan covers 18 key futures products such as alumina, nickel, and copper cathodes
- ShFE seeks to enable options trading, hedging, and full international participation
- Drafts are open for public comment until June 4
“Access for foreign investors to all ShFE products is now on a fast track,” said Tiger Shi, CEO of BANDS Financial.
This initiative marks a significant step in making China’s financial markets more globally integrated, especially in commodities pricing and currency use.