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Palm oil options trading launched in China, open to overseas investors

DALIAN
2021-06-18 14:08

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DALIAN, June 18 (Xinhua) -- China on Friday started the trading of palm oil options at the Dalian Commodity Exchange (DCE) and allowed overseas investors to participate, marking another step in the country's financial opening-up push.

The move made palm oil options the first yuan-denominated options contracts listed in China open to overseas investors, the DCE said.

China is a major importer and consumer of palm oil in the world, with its import and consumption volumes accounting for 15 percent and 10 percent of the world's total, respectively.

By launching palm oil options and including overseas investors in the trading, the country can provide risk management tools for market entities and contribute to the coordination of international supply and industrial chains, as well as ensure the quality development of its futures market, the DCE said.

China will also launch the trading of crude oil options on the Shanghai International Energy Exchange on June 21, according to an announcement made in May by the country's securities regulator.

In 2020, the total turnover of China's futures market rose 50.56 percent in 2020 from the previous year to 437.53 trillion yuan (about 67.9 trillion U.S. dollars), reaching a historic high, official data showed.
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