China to Launch First Options Open to Foreign Investors

2021-06-01

By Liu Caiping and Luo Meihan

China is set to launch its first batch of yuan-denominated options open to trading by overseas investors, as the country accelerates the domestic derivatives market’s opening-up to meet foreign investors’ demand for hedging tools.  

　　The China Securities Regulatory Commission (CSRC) has approved trading of crude oil options on the Shanghai International Energy Exchange (INE), and palm oil options on the Dalian Commodity Exchange (DCE), the securities regulator announced (link in Chinese) on Friday. Both products will be open to overseas investors, with palm oil options set to begin trading on June 18 and crude oil options to follow on June 21, according to the announcement.

　　Opening these products to overseas investors can help meet their risk management needs, the CSRC said.