The Development and Challenges of China’s Futures Markets

Abstract

The futures market in China started in the early 1990s as the economic reform deepened. After two decades of development, there are now four futures exchanges: Shanghai Futures Exchange, Dalian Commodity Exchange, Zhengzhou Commodity Exchange, and China Financial Futures Exchange. Product innovations and regulatory changes largely contribute to the rapid expansion of the market. Several futures contracts are now among the most active contracts in the world market. With development of its futures market and efforts to open up the market to investors overseas, China’s pricing power in the global commodity market has improved over time.