(Yicai Global) June 7 -- Two of China's biggest commodity exchanges have opened their first overseas offices in Singapore as part of efforts to enhance communication between the Chinese market and overseas investors.
The outposts of the Shanghai Futures Exchange and the Dalian Commodity Exchange will provide easier access to Chinese financial products from abroad, International Finance News reported, citing Yan Shaoming, deputy head of the China Securities Regulatory Commission's futures department, who was speaking at the opening ceremony for the SFE's branch.
Singapore represents a key market for the internationalization of China's financial sector. It is the world's third-largest commodity exchange center, with total trading volume of more than USD1.3 trillion last year.
SFE's Singapore office is another important step in globalizing its business following the exchange's March launch of crude oil contracts, China's first international futures. The exchange may also open up copper and rebar futures to foreign investors
The DCE has initiated regulatory filings both in Hong Kong and Singapore and received the green light for a Singapore office in March, according to Deputy General Manager Zhu Lihong.
China's securities regulator identified DCE's iron ore futures as a 'special domestic product' in February. As the first mature Chinese futures product accessible to global investors, the futures were made available to foreigners on May 4.
Editor: William Clegg