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<\/a><\/p>\nIt is reported that central government of China plans to allow foreign commodities exchanges to set up delivery warehouses in the mainland\u2019s first free-trade zone in Shanghai and help Hong Kong Exchanges and clearing to expand into commodities trading. In the meantime, Beijing would also \u201cgradually approve foreign firms to participate in commodities futures trading\u201d in the free-trade zone which would be established in the Pudong New Area. This news may attract interested eye sight worldwide to the booming Chinese futures market. To be honest, futures especially commodity futures are not always mainstream financial product in life of Chinese. Possibly, because of black history, higher risk exposure and lack of certain knowledge. However, it seemed like that Chinese futures market did wonderful performance in world stage silently. \u00a0I am surprised to see a research paper which indicated Chinese future market joined the ranks of the world\u2019s most actively traded futures. In year 2011, the three most active agricultural futures in the world by contract volume were Chinese-the ZCE (Zhengzhou Commodity Exchange) cotton and sugar contracts and SHFE (Shanghai Futures Exchange) rubber futures. Out of the top ten agricultural contracts by volume, seven were Chinese.<\/p>\n Black History<\/p>\n China built its first true futures exchange in 1993 and soon boomed. The over fast and early boom buried evil seed for the futures. Fraud and price manipulation prevailed in chaotic environment. After the notorious scandal in the bond futures contract (the \u201c327\u201devent), China Securities Regulatory Commission close down 80% futures brokers of the 1000,with only three exchanges remain. Until 1990\u2019 did the futures market start to grow under reform and rationalizition.<\/p>\n Today<\/p>\n Overview of Chinese futures volume<\/p>\n <\/p>\n Chinese futures market experienced up and down during its development. The big country has great potentials, so does the futures market. However, running may not be Chinese style, to walk step by step is more rational choice.<\/p>\n Reference:<\/p>\n Chinese futures markets:coming off a booming decade<\/a><\/p>\n new shanghai free-trade zone to lead push in futures<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" This week, I am occupied with assignment and time lag. Everyone is likely to wait until U.S. government re-open. Let me talk something else in the waiting period. A good news for Chinese commodities futures industry : the set-up of … Continue reading <\/a><\/p>\n<\/a><\/a><\/p>\n