China to open crude oil and palm oil options to foreign investors

O

optquant

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 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.

For more details check

Shanghai Futures Exchange Jiang Yan: Crude oil options will be listed as China’s international options - FangQuant

DCE:Soliciting Opinions on the RBD Palm Olein Options Contract and the Relevant Rule (qmhedging.blogspot.com)
 
Well what's the point? They won't let you play. As soon as they sense the slightest "speculation", they go into the market to intervene. https://finance.yahoo.com/news/china-vows-zero-tolerance-commodities-014648116.html

https://www.scmp.com/economy/china-...xcessive-market-intervention-commodity-prices

With all the capital control that they put in place against anybody who put money in there and with all the market risk that I still have to deal with, not going to waste my time and energy to play if my rewards are going to be capped arbitrarily by somebody with a political agenda and has no idea how the market works.

If they want people to play, they have to let people to play otherwise people are not going to play. Plenty of markets out there that I am free to play especially when they are free to move money anywhere they want at any time. These people are not even like George Soros and prices are really fluctuating due to market forces and China is already doing these interventions.
 
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JSOP said:
Well what's the point? They won't let you play. As soon as they sense the slightest "speculation", they go into the market to intervene. https://finance.yahoo.com/news/china-vows-zero-tolerance-commodities-014648116.html

https://www.scmp.com/economy/china-...xcessive-market-intervention-commodity-prices

With all the capital control that they put in place against anybody who put money in there and with all the market risk that I still have to deal with, not going to waste my time and energy to play if my rewards are going to be capped arbitrarily by somebody with a political agenda and has no idea how the market works.

If they want people to play, they have to let people to play otherwise people are not going to play. Plenty of markets out there that I am free to play especially when they are free to move money anywhere they want at any time. These people are not even like George Soros and prices are really fluctuating due to market forces and China is already doing these interventions.
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indeed.it made the game tricky.and we seen short-ban and sudden margin hike in most countries.
 
good. more trading opportunities.

INE crude oil futures volume is quite decent.
I doubt the DCE palm oil futures volume is high.
 
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optquant said:
indeed.it made the game tricky.and we seen short-ban and sudden margin hike in most countries.
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yeah but those short bans and sudden margin hikes are not by the government. That's the difference. It's the government involvement that's worrisome. You want people to play, the government needs to lay off and trust the market forces determine everything. That's how you attract people's investment.
 
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maxinger said:
good. more trading opportunities.

INE crude oil futures volume is quite decent.
I doubt the DCE palm oil futures volume is high.
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upload_2021-6-4_16-57-8.png

DCE palm oil is also the most traded palm oil futures in the world. check daily data here Market Statistics (dce.com.cn)
 
maxinger said:
good. more trading opportunities.

INE crude oil futures volume is quite decent.
I doubt the DCE palm oil futures volume is high.
More...

Just another attempt of China to earn more foreign capital and control the world economy. The financial market is the last frontier that China has so far not able to conquer and China wants to change that. But unfortunately, to do that, China has to loosen up with no governmental influences and just let the market decide everything. China, so far, is not able nor willing to do that so to me that's the biggest risk, the political risk. Better to preserve the capital that I have earned here to invest elsewhere.
 
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