China opens iron ore and oil derivatives to foreigners

China opens iron ore and oil derivatives to foreigners

China is set to open its iron ore futures market, the world’s most liquid, to foreign investors for the first time.

Jiang Yang, vice chairman of China’s securities regulator, said this week the country’s futures market would be gradually opened up to foreigners, starting with iron ore and crude oil derivatives.

The China Securities Regulatory Commission will also encourage qualified companies in countries that are part of the Belt and Road initiative to issue Panda bonds, yuan-denominated debt sold in China by foreign firms or governments, Jiang said, according to an official statement posted online.

“Internationalising the futures market is seen as a way China can move quicker to becoming a price-setter rather than a price-taker,” analysts at Alphabulk noted.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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