China Opens Nickel and Lithium Futures to Foreign Investors

Important Announcement from the China Securities Regulatory Commission

The China Securities Regulatory Commission (CSRC) announced that 14 new futures and options products, including nickel and lithium carbonate, will be opened to foreign investors. Although no specific start date has been given yet, exchanges are preparing for the implementation.

A New Era in the Commodity Market

As the world's largest raw material buyer, China has long expressed concerns over the fact that commodity prices are mainly determined in centers like London, New York, and Singapore. With this step, the Beijing administration aims to increase its influence over commodity prices and boost the global use of the yuan.

The Importance of Nickel and Lithium

Nickel futures are traded on the Shanghai Futures Exchange, while lithium carbonate contracts are traded on the Guangzhou Futures Exchange. These metals are vital for battery production and energy transition, and they rank among the most actively traded commodity contracts in China.

Future Perspective and Expert Opinions

Experts predict that this development could pave the way for other metals such as copper, aluminum, and zinc to also be opened to foreign investors in the future. The Shanghai Futures Exchange emphasized that the involvement of foreign investors would enhance China’s commodity pricing power and strengthen risk management processes.