China mulls launching more futures, options

China is considering launching more types of futures and options to attract domestic commercial banks and foreign investors, China Securities Regulatory Commission ( CSRC) Vice Chairman Fang Xinghai said Thursday.

During the two- day 14th Shanghai Derivatives Market Forum, Fang said the CSRC is pushing for the introduction of crude oil futures and preparing for the trading of apple and pork futures, domestic news publication thepaper. cn reported Thursday.

Since 2016, China has launched 46 commodity futures, five financial futures, two commodity options and one financial option, according to the CSRC. The financial products cover agricultural products, industrial goods, heavy metals and energy.

Shanghai International Energy Exchange Corp is scheduled to launch domestic crude oil futures by the end of 2017, according to a statement posted on May 11 by the Shanghai Futures Exchange.

It is urgent and necessary for China to have crude oil futures, which will give the country a greater say in global oil prices, Li Zhoulei, a crude oil and petrochemical analyst at Shanghai Cifco Futures, told the Global Times Thursday.

Authorities are working on adjusting tax rules to allow foreign investors to trade crude oil futures and iron ore futures, Fang said. At present, overseas investors can buy futures traded in China through domestic institutions.

Li suggested that China’s futures exchange ought to set up overseas branches to promote its futures and options abroad.