2025.03.05 XIE, Qing (Natasha)、ZHANG, Chi (Austin)
At the end of 2024, the China Securities Regulatory Commission (CSRC) announced its plan to expand the range of commodity futures and options in which qualified foreign investors (QFIs) could participate. On February 28, 2025, the Shanghai Futures Exchange, the Shanghai International Energy Exchange, the Zhengzhou Commodity Exchange and the Dalian Commodity Exchange announced that starting from March 4, 2025, the range of tradable commodity futures and options for QFIs will be expanded, covering a total of 23 newly included varieties. The Guangzhou Futures Exchange also announced that starting from March 4, 2025, QFIs can participate in trading six commodity futures and options contracts listed on it. With the expansion of these tradable commodity futures and options, the total number of varieties in which QFIs can participate increases to 75.
Foreign investors can participate in domestic futures or options trading in China through two cross-border channels by: (1) obtaining a QFI qualification to trade certain futures and options contracts, and (2) participating in trading specific futures and options contracts. The table below summarizes the contracts that foreign investors can trade through both the QFI channel and the specific futures and options channel.
Futures Exchanges | Futures Contracts Accessed by QFI | Options Contracts Accessed by QFI | Specific Futures Contracts | Specific Options Contracts |
SHFE | Gold | Gold | ||
Copper | Copper | |||
Aluminum | Aluminum | |||
Zinc | Zinc | |||
Silver | Silver | |||
Steel Rebar | Steel Rebar | |||
Hot-Rolled Coils | ||||
Stainless Steel | ||||
Fuel Oil | ||||
Woodpulp | ||||
INE | Crude Oil | Crude Oil | Crude Oil | Crude Oil |
TSR20 | TSR20 | |||
Low Sulfur Fuel Oil (LSFO) | Low Sulfur Fuel Oil (LSFO) | |||
Bonded Copper | Bonded Copper | |||
SCFIS(Europe) | SCFIS(Europe) | |||
DCE | No.1 Soybean | No.1 Soybean | No.1 Soybean | No.1 Soybean |
No.2 Soybean | No.2 Soybean | No.2 Soybean | No.2 Soybean | |
Soybean Meal | Soybean Meal | Soybean Meal | Soybean Meal | |
Soybean Oil | Soybean Oil | Soybean Oil | Soybean Oil | |
RBD Palm Olein | RBD Palm Olein | RBD Palm Olein | RBD Palm Olein | |
Iron Ore | Iron Ore | Iron Ore | ||
Linear Low-Density Polyethylene (LLDPE) | Linear Low-Density Polyethylene (LLDPE) | |||
PP | PP | |||
PVC | PVC | |||
Ethenylbenzene | Ethenylbenzene | |||
ZCE | PTA | PTA | PTA | |
Methanol | Methanol | |||
White Sugar | White Sugar | |||
Rapeseed Oil | Rapeseed Oil | Rapeseed Oil | Rapeseed Oil | |
Polyester Staple Fiber | Polyester Staple Fiber | |||
Paraxylene (PX) | Paraxylene (PX) | |||
Polyethylene Terephthalate Resin For Bottles | Polyethylene Terephthalate Resin For Bottles | |||
Manganese Silicon | Manganese Silicon | |||
Rapeseed Meal | Rapeseed Meal | Rapeseed Meal | Rapeseed Meal | |
Peanut Kernel | Peanut Kernel | Peanut Kernel | Peanut Kernel | |
GFEX | Silicon Metal | Silicon Metal | ||
Lithium Carbonate | Lithium Carbonate | |||
Poly Silicon | Poly Silicon | |||
CFFEX (Only For Hedging Purpose) | CSI 300 Index Futures | CSI 300 Index Options | ||
CSI 500 Index Futures | CSI 1000 Index Options | |||
CSI 1000 Index Futures | SSE 50 Index Options | |||
SSE 50 Index Futures |
Our Observations
With the current uncertainties in both the domestic and international financial markets, China’s commodity futures market continues its tone of openness. It promotes the inclusion of more eligible commodity futures and options in a progressive and orderly manner, allowing QFIs to participate in the trading of a broader range of commodity futures and options.
Although the regulatory agencies have implemented a series of stringent measures in the past year, such as enhancing the regulation of high-frequency trading to prevent excessive speculation, this has not slowed the pace of market openings. This shows the confidence of the Chinese government in its regulatory capabilities to adapt to the further opening-up of market access. The internationalization and institutionalization levels of the futures market are expected to be further enhanced.
We will continue to closely monitor any regulatory developments and provide timely updates to clients.
