A worker pours molten iron into a mold at a mill manufacturing marine engine components in Huaian, Jiangsu province, China February 11, 2019.
BEIJING — Financial institutions are betting on more business opportunities in China’s finance industry, which Beijing is eager to crack open — even if analysts say major changes are a long way off.
Regardless of the coronavirus pandemic or geopolitical tensions, Chinese authorities have stuck to plans to increase the ability of foreigners to participate in the local financial market.
Beijing would like more foreign capital to come into the country and boost international use of its currency, known as the yuan or renminbi. As China is set to grow into the world’s largest economy, foreign investors are keen to capture a share of that growth.
Some of the most recent developments in the industry are in the Chinese futures market. Investors can trade futures contracts as a way to bet on upcoming price changes, or guard against losses.
“As China introduces more international (futures) contracts such as the recent copper contract from (the Shanghai International Energy Exchange), we have been getting a vast amount of interest from our existing clients, especially from Europe some from the U.S. as well,” said Rick Chang, general manager for Greater China at U.S.-based financial data and trading software company, CQG.
The interest in copper means the commodity “has a huge potential of being a key benchmark to the market globally and regionally,” Chang