China’s commodity exchanges to open to foreign investors - China’s latest business and technology news - SupChina

China’s commodity exchanges to open to foreign investors – China’s latest business and technology news

Once a strictly regulated market only reserved for domestic investors, China’s commodity exchanges are gradually opening up to foreigners as part of an effort to increase the influence of the yuan — global benchmarks on commodities are still mostly priced in dollars. In addition to the expansion of investments permitted for foreign investors, Chinese exchange operators also plan to add futures contracts for key raw materials, including apples and cotton yarn, as well as options on copper and corn, according to Bloomberg.

Progress has been slow this year. In March, Dalian published a hog-price index, indicating a start of trading in related futures. In early April, Zhengzhou Commodities Exchange said that it had finished a draft contract design for apple futures. However, breakthroughs on real changes are rare, as the China Securities Regulatory Commission has yet to approve any new futures contracts.

  • A $60 billion ecommerce loophole in China may be narrowing / Bloomberg
    “Known as cross-border e-commerce, the booming backdoor avenue allows Chinese consumers to buy overseas-manufactured goods online and effectively circumvent the regulatory issues that have stymied access to consumer products from cosmetics to Cognac. Faced with pressure from conventional retailers at home, and the loss of tax revenue, the government is now looking at overhauling the legal loophole.”
Jiayun Feng

Jiayun is a Chinese native and was born in Shanghai, where she spent her first 20 years and earned a bachelor’s degree in journalism at Fudan University. Interested in writing for a global audience, she attended the NYU Graduate School of Journalism for its Global & Joint Program Studies, which allows her to pursue a journalistic career along with her interest in international relations. She has previously interned for Sixth Tone and Shanghai Daily.