China studying to open up commodities futures market

[SHANGHAI] China will study to allow banks and other financial institutions to enter the country's commodities futures market, a senior executive at the China Securities Regulatory Commission (CSRC) said on Wednesday.

The country's commodities exchanges will also maintain a close watch on movements in the futures market, CSRC vice-chairman, Fang Xinghai, told a conference in Shanghai. A surge in prices earlier this year sparked fears that the futures markets were heading for a dangerous boom-and-bust cycle.

He added the commodity futures market should open up to more offshore investors and that there are currently plans to launch more commodity futures products, starting with crude oil, iron ore and rubber.

REUTERS