SHFE Launches New Options Contracts in Aluminium, Zinc

Source: Regulation Asia Editors, Regulation Asia 2020-08-15

China has launched 18 commodity options over the past three years. The new aluminum and zinc options traded for the first time on Monday.

The SHFE (Shanghai Futures Exchange) on Monday (10 August) launched trading in aluminum and zinc options.

China is the world’s largest production and trading market for non-ferrous metals. Aluminum futures contracts have been listed for 28 years.

“Options can well supplement futures,” said Zhao Jinhua, chairman of China Aluminum International Trading Group, in a Xinhua report.

He noted that commodity options can help meet companies’ needs for flexible risk management and lower the cost of hedging, thereby also enhance competitiveness.

China has launched 18 commodity options over the past three years.

Five of China’s commodity futures contracts are open to foreign investors, including futures in crude oil, natural rubber, low-sulfur fuel, PTA (purified terephthalic acid) and iron ore.

risk management

Shanghai Futures Exchange

SHFE Launches New Options Contracts in Aluminium, Zinc

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