July 8, 2008
Futures trading volume doubles in China, led by farm products
China's futures market witnessed a sharp increase in trade volume in the first half, led by an active trade in farm products, including sugar, soy, and corn.
The trade volume hit RMB 35 trillion (US$5.1 trillion), an increase of 142 percent over the first half last year, according to figures released July 1 by the China Futures Association.
Futures markets nationwide realised 577 million contracts in the first six months, up 148 percent.
The increase was attributed to a growing market, fluctuating domestic farm product prices caused by surging grain prices in the world market and China's severe winter weather earlier this year, analysts said.
At Zhengzhou Commodity Exchanges (ZCE), trade volumes rose 450 percent to RMB 7.49 billion. The exchange trades mainly in wheat, cotton and sugar.
At the Dalian Commodity Exchange (DCE), which trades mainly in corn and soy, trade volume totaled RMB 13.49 trillion in the first half, up 381 percent.
The DCE accounts for 31 percent of China's total futures trading volume while the ZCE accounts for 21 percent. The rest is accounted for by Shanghai Futures Exchange.
The Chinese futures market is much weaker than the commodity market, with few types of contracts available.
However, futures trading of pork, and other metals are set to be introduced to the market, said Yu Junli, research director of Green Futures adding that stock index futures are also forthcoming this year.