China wants to open its commodity markets to foreigners

[TraDaToR]

https://www.bloomberg.com/news/arti...r-the-target-for-china-s-big-derivatives-push

"After years of building up locals-only markets for key products like grains in Dalian and metals in Shanghai, China wants to expand the kinds of investments permitted for foreigners. Exchange operators also plan to add futures contracts for key raw materials including hogs, apples, cotton yarn, pulp and urea fertilizer, as well as options on copper, corn and cotton. Despite bullish comments by officials, however, some question whether authorities have the appetite to truly open up."

 

[just21]

Copper options would be a first as they don't trade on CME.

 

[JSOP]

If 1) Allows also an corresponding options market for the same commodities and

2) The government promises NEVER to intervene in the spot or the options market for these commodities in any way, shape or form directly or indirectly NO MATTER what happens

Then sure, I am game. Otherwise I am NOT putting 1 cent of my money when it can be wiped out in an instant when the government inject Billions to manipulate the market in one direction or another.

 

[lx008]

But how about the capital control ? Can foreign investors get their money out ?

 

[maxinger]

Are foreigners able to trade commodity futures like iron ore from Dalian Futures exchange / SHFE? If not, any suggestion which alternative Exchange we can trade with?

 

[JSOP]

But how about the capital control ? Can foreign investors get their money out ?

Yes capital control is still in place and nope you cannot get your money out UNLESS they changed the rules to attract foreign investors. Last time I checked, you can only take out $500 a day with no questions asked otherwise your money stays in China regardless what your citizenship is.

 

[luisHK]

Yes capital control is still in place and nope you cannot get your money out UNLESS they changed the rules to attract foreign investors. Last time I checked, you can only take out $500 a day with no questions asked otherwise your money stays in China regardless what your citizenship is.

Was Mao even born last time u checked ? there are capital controls on chinese yuan, an individual can only change 50000usd a year without hassle, but u can move much larger amounts of foreign currencies, if one's bank allow that ( international banks like HSBC are ime more confortable with individual accounts international foreign currency transfers, but better stick to mainland banks if u deal with rmb and local transfers).

 

[luisHK]

Just to give one a clearer idea, below is a link to HSBC China global transfers' regulations, it allows up to 200kUSD a day in and out of the country. Besides one can withdraw from their own account 10k USD or equivalent in other foreign currency cash a day at HSBC's counter, without fee for Premier account holders.

https://www.hsbc.com.cn/1/PA_ES_Con.../documents/HSBC_China_Global_Transfer_Eng.pdf

 

[JSOP]

there are capital controls on chinese yuan, an individual can only change 50000usd a year without hassle,

Yes for CHINESE citizens, NOT for foreign national. Yes if you are a Chinese citizen, you can exchange that much in a year ONCE but if you are a foreign national, NO.

but u can move much larger amounts of foreign currencies, if one's bank allow that ( international banks like HSBC are ime more confortable with individual accounts international foreign currency transfers, but better stick to mainland banks if u deal with rmb and local transfers).

NOT true, NOT in China. NO banks in China would allow you if you are a foreign national to move more than $500 USD abroad even though you are not even a citizen of China. You want to risk getting your money stuck in China? Go right ahead, stupid troll!

Member put on "Ignore".

 

[luisHK]

Lol, the experts are out in force today, we only need Volpunter back and the party would be at full throttle.


For those interested reread the link as well as other links available on the net. You can then chose wether to believe Jsop's mindfarts or HSBC website.
I'm speaking from personal experience with HSBC China btw as a non chinese citizen. 200k a day through their global transfer feature no problem, one second the money is with HSBC China, the next second it is in a different country HSBC account . It works the same the other way around. No problem either withdrawing 10k USD a day, except it's better to call in advance to order the notes, especially non USD notes.
Exchanging 50k a year also fine, easily done online.