China Trade Information

China may give green light to the qualified foreign institutional investors (QFII) to purchase commodity futures, said Lao Guangxiong, deputy general manager of the Shanghai Futures Exchange (SFE) at a meeting on Wednesday.

The move aims to build SFE a better platform for futures trading, and the futures exchanges in China will be the top choice for foreign investors with the participation of more institutional investors, said Lao, adding that SFE is seeking regulatory approval to introduce steel products contracts.

However, Wang Lihua, chairwoman of SFE, said at the same conference that it is hard to give out a time frame for the QFIIs to enter the Chinese commodities markets, as Chinese regulators are more prudent on risk control amid the U.S. subprime mortgage meltdown.

Besides the commodity futures, the stock-index futures may also be open to QFIIs, according to an unnamed official last August. China may allow QFII to buy a maximum of US$1 billion worth of commodity and stock-index futures.

Tags: QFII, Stock

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