Chinese exchange to further open up

File photo of the Dalian Commodity Exchange [Photo/IC]

China's Dalian Commodity Exchange will open more of its futures contracts to foreign investors, aiming to build a first-tier exchange of derivatives in the world within five to 10 years, according to a senior official at the bourse.

"DCE will further open up to outside investors, making more of its futures internationalized," executive vice president Wang Weijun said on Monday.

DCE has been making impressive progress opening futures for soybean, palm oil, soybean meal, soybean oil and other products to outside investors, he said.

DCE will also further optimize the internationalization of iron ore contracts, including providing better options for investors regarding issues such as deposits and currency exchanges, Wang said.

Iron ore is the second commodity China opened to outside investors after crude oil futures, when CDE opened up iron ore contracts to overseas company investors in May 2018, and allowed foreign individuals to trade iron ore futures later.

Wang Qiang, strategic customer director of Cargill Investments (China) Ltd, said the DCE's iron ore contracts provide good tools for steel companies to manage operation risk.