China aims to launch fuel oil, cotton and corn futures at three exchanges in 2004 to inject more life into its derivatives sector, which saw futures volumes hit historic highs last year, state media and officials said.
The Shanghai Futures Exchange are expected to roll out contracts for fuel oil, the Dalian commodity exchange for corn and the Zhengzhou commodity exchange for cotton, the China Daily quoted Tian Yuan, chairman of the China Futures Association, as saying on Tuesday.
Officials at the three exchanges declined to comment on the timeframe for the launch, saying that they were waiting for the China Securities Regulatory Commission to give the green light.
Hedging tools in the commodities and financial sectors are key in minimising risks as China opens up its markets after the country joined the World Trade Organisation in 2001.
"China is the world's top producer of cotton and has a huge textile sector, so launching the futures will be useful for the industry," Wang Xianli, general manager of the Zhengzhou exchange told Reuters, adding that the exchange was ready to launch the new contract.
China's futures sector has become more active in the past year, with Shanghai copper and Dalian soybean futures being watched closely by global markets such as the London Metal Exchange (LME) and the Chicago Board of Trade, even though foreigners are not allowed to trade Chinese futures.