⁍ The futures contract will launch on the Shanghai International Energy Exchange (INE) on Nov. 19.
⁍ The new contract will be traded in yuan, but unlike its competitor, will exclude tax and customs duty.
⁍ Hopes are for the new contract to replicate the success of the INE’s other major futures open to foreign investors, namely crude oil ISCc1.
– Starting next month, foreign investors will be able to buy and sell copper in China in a new way. The Shanghai International Energy Exchange will launch the first international copper futures contract on Nov. 19, the China Securities Regulatory Commission said Friday, per Reuters. Unlike the existing China copper contract on the Shanghai Futures Exchange, the new contract will be traded in yuan and deliver to bonded warehouses, meaning it will be easier for foreign traders to get their hands on the industrial metal. Reuters notes that China is the world’s largest importer and consumer of copper, and the new contract will have an advantage over the ShFE in that it will be traded in yuan, which will make it easier for foreign traders to get exposure to China’s copper market.
Source: https://www.reuters.com/article/us-column-russell-copper-china-column/column-chinas-new-international-copper-contract-comes-at-the-right-time-russell-idUSKBN27B0GJ