(Yicai Global) Nov. 28 -- The Dalian Commodity Exchange (DCE) will experiment with iron ore futures to explore the practice of directly bringing foreign investors into trading, Economic Daily reported today, quoting Li Zhengqiang, chairman of the exchange.
Based on the currency system and its aim to retain its core business mechanism, the DCE has developed an internationalization plan that allows iron ore futures to be denominated in yuan, foreign currencies to be used as deposits, and foreign customers and institutions to participate in market trading through qualified domestic institutions. The program has won strong support from the China Securities Regulatory Commission and other relevant ministries and industrial associations, Li said.
The DCE will use the iron ore program as a pilot before extending its opening-up policy to include imported soybeans, bean pulp, palm oil and other products. The exchange will also consider setting up offices and warehouses to try and provide convenient and efficient services to overseas customers, he added.