Chinese-backed Apex to start trading on May 25

SINGAPORE: Chinese-backed Asia Pacific Exchange Pte Ltd (Apex) said it will start trading here on May 25, the latest foray into overseas trading venues by mainland investors.

Apex would offer palm olein futures that would be dollar-denominated and physically delivered, it said on Thursday.

The bourse will be the third derivatives exchange in the citystate, joining venues owned by Singapore Exchange Ltd and Intercontinental Exchange Inc.

China has seen several outbound investments in trading venues as part of its efforts to integrate into the global financial system, with deals for stakes in markets in Bangladesh and Pakistan, and a joint venture with Deutsche Boerse AG in Frankfurt.

While those efforts have the backing of one or more mainland exchange, Apex is privately funded and led by industry veteran Eugene Zhu, who previously ran the Dalian Commodity Exchange and the China Financial Futures Exchange.

Zhu himself is a major investor in Apex, which has more than 60 employees. A unit of CEFC China Energy Co holds a 20 per cent stake in Apex, according to corporate filings.

Hong Kong Xinhu Investment Co and Shanghai Chaos Investment also have stakes.

Lim Hwee Hua, a KKR Inc senior adviser who was Singapore’s first female minister, is Apex’s chairman.

The company was studying products including natural rubber, South American soybean, iron ore, crude oil and financial futures, said Zhu in an interview earlier this year.