December 29, 2022

China's Dalian Commodity Exchange now open to foreign traders

China's Dalian Commodity Exchange has opened eight soybean-related futures and options, including No 1 soybean, No 2 soybean, soybean meal and soybean oil, have officially opened to foreign traders, China Daily reported.

Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said it is the first time for the exchange to introduce overseas traders in the full soybean commodities.

Fang said an increasing number of domestic and foreign businesses are now using Chinese future prices directly for basis trading, and businesses that manufacture goods abroad are also utilising Chinese market data to timely adjust production schedules.

China is a significant producer of non-GMO soybeans globally and a significant market for GMO soybeans.

Yan Shaoming, general manager of the Dalian Commodity Exchange, said that opening up will contribute to a closer connection between the global soybean production, processing, and trade systems, fully utilise China's advantages of its extremely sizable market, and promptly transmit market trend information about China through its future pricing.

Yan said it will also strengthen the internal drive of the international soybean industry entities to plan production and operation by actively referring to the Chinese market.

He said it will help international oil and oil-seed companies to better avoid the risk of price fluctuations, stabilising the advantages of transnational operations, and it will better ensure the global and China's security of grain and oil.

Since the exchange's founding in 1993, soybean-related futures have been among the first futures products to be offered.

-      China Daily