Latest news with #TigerShi
See - Sada Elbalad
30-05-2025
- Business
- See - Sada Elbalad
Shanghai Futures Exchange Opens Doors to Foreign Investors in Move to Boost China's Influence in Global Metals Markets
Waleed Farouk The Shanghai Futures Exchange (SHFE) announced on Tuesday 34 new regulatory proposals aimed at opening China's futures market to foreign investors and brokers, as part of efforts to support the internationalization of the Chinese currency (RMB) and enhance China's influence in global commodity pricing. The proposals cover multiple areas, including gold and silver options trading, hedging, and precious metals futures trading. The exchange emphasized that the goal is "full opening to foreign participants." Tiger Shi, CEO of BANDS Financial, told Reuters that this announcement represents "a fundamental change in the Shanghai Exchange's constitution," noting that direct foreign access to the exchange's products is "now on the fast track." Key proposed changes: Allowing foreign brokers and investors to trade directly without the need for local intermediaries. Accepting margin in foreign currencies such as the US dollar. A public comment period on the proposals will be open until June 4. A broader strategy to internationalize the Chinese market This move aligns with an earlier announcement on April 21 by the People's Bank of China (PBoC) and three other government agencies, which included investments to promote the internationalization of the Shanghai Gold Exchange (SGE), including the establishment of international delivery warehouses, in preparation for competing with the London Metal Exchange (LME) for its role in global gold pricing. A report issued at the time by Jinshi Data indicated that the plan aims to "enhance Shanghai's capacity as an international financial center for the allocation of global resources." It includes developing a platform for trading cross-border financial assets, supporting cooperation with foreign exchanges in product pricing, and expanding the use of renminbi reference prices in global markets. Reshaping the Global Pricing Map Although China is the world's largest consumer of precious metals, the pricing of most of its transactions remains tied to international prices, such as those issued by the London Metal Exchange. However, Beijing seeks to change this equation by making Shanghai futures a global benchmark, potentially dismantling Western dominance of metals markets for the first time in more than 140 years. Reuters previously reported that China's success in attracting foreign traders to the Shanghai Exchange will give its contracts a global benchmark and reduce reliance on Western price signals. In statements to state media, Wang Fenghai, general manager of the Shanghai Exchange, said that internationalizing the market is a prerequisite for strengthening China's influence in metals pricing. He added that the exchange is working to develop cross-border delivery capabilities by establishing warehouses outside China to store the metals associated with its futures contracts. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Ayat Khaddoura's Final Video Captures Bombardment of Beit Lahia News Australia Fines Telegram $600,000 Over Terrorism, Child Abuse Content Arts & Culture Nicole Kidman and Keith Urban's $4.7M LA Home Burglarized Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks
Business Times
28-05-2025
- Business
- Business Times
China plans commodities overhaul to attract global investors
CHINA is on the cusp of its biggest move yet to open up its vast commodities markets, after the Shanghai Futures Exchange (SHFE) unveiled an internationalisation plan to streamline access for overseas investors. The country's biggest raw materials bourse is soliciting views on a proposal to let participants post foreign exchange as collateral for yuan-denominated trades, according to a statement on Tuesday (May 27). Restrictions on foreigners and their capital are an oft-cited reason for China's failure to punch its weight in international markets. The much-anticipated move would serve a number of purposes, including China's long-held ambition to more directly influence the price of the imported commodities on which its economy relies. It would also help burnish the yuan's appeal as an international currency to rival the US dollar in financial markets. SHFE, set up in 1999 and run by China's government, offers trading in contracts from copper and steel to gold, crude oil and petrochemicals. The country is the world's largest buyer of raw materials, but benchmark pricing for key commodities is usually set elsewhere, including New York and London for oil, London for base metals and Singapore for iron ore. 'It's time for yuan pricing to go global,' said Tiger Shi, managing partner at Bands Financial, who has been involved in China's commodities markets for more than two decades. Earlier, more modest moves to open up commodities futures have had limited success. The Shanghai International Energy Exchange, a SHFE unit, has offered yuan-denominated copper to overseas participants since 2020, and a crude-oil contract since 2018, but neither has made much of a dent in the dominance of international exchanges. The Dalian Commodity Exchange opened up iron ore futures in 2018, and that has found more traction as a benchmark. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The latest plan appears to go much further, by proposing sweeping changes to ease participation across 18 of SHFE's domestic contracts. The exchange will overhaul rules on market access, trading, settlement, risk control and delivery to 'systematically internationalise' trading, SHFE said. It has asked for public feedback by Jun 4. 'This is welcome news,' said Zheng Jia, head of trading at Shanghai Soochow Jiuying Investment Management. 'It will attract more diversified participants and boost liquidity, and will also connect Chinese prices more closely with overseas prices.' Price setting The proposals would serve the country's broader opening-up strategy, while helping Shanghai to develop as an international financial centre and enhancing China's influence over global commodities pricing, SHFE said. Chinese authorities have pledged to expand cross-border financial services in Shanghai, the nation's premier commercial hub. A plan released in April vowed to help international investors become more deeply involved in trading platforms, and included a push to expand yuan-denominated pricing at the Shanghai Gold Exchange. 'The future direction is to develop the yuan into a trade financing currency, or a funding currency,' said Tommy Xie, head of Asia macro research at OCBC. 'An important function of any trade financing currency is the pricing of commodities.' Shi at Bands Financial said he expects nickel to be the first contract that SHFE opens up under its new proposals. He said the bourse's plan will complement other steps to bridge the gap between China's commodities markets and the rest of the world's. The London Metal Exchange – owned by Hong Kong Exchanges & Clearing – is poised to add warehouses in Hong Kong to its global network. That's aimed at giving businesses in mainland China an easier way to ship metal to the exchange, especially at times of market stress and major dislocations between Chinese and international prices. BLOOMBERG
Reuters
27-05-2025
- Business
- Reuters
Shanghai Futures Exchange to open wider for foreigners in bid to internationalise renminbi
BEIJING, May 27 (Reuters) - The Shanghai Futures Exchange (ShFE) released draft proposals on Tuesday to open up domestic futures trading to overseas investors for a wide range of commodities as part of an effort to help internationalise the renminbi. China is the world's largest consumer of industrial metals by far, but much of the trade is priced by overseas benchmarks. ShFE has long been working on plans to build its global presence and challenge the dominance of the rival London Metal Exchange. The 34 different proposals, opens new tab, which stretch from options trading and hedging to tin futures, aim to "fully introduce overseas participants" and help internationalise the renminbi, the exchange said. "This announcement is basically a constitutional change for the entire ShFE opening up," said Tiger Shi, CEO of broker BANDS Financial. "Access for foreign investors to all the ShFE products is on a fast track from now on." Draft rule changes covering futures for 18 products including alumina, nickel and copper cathodes, are available for public comment until June 4.
South China Morning Post
28-04-2025
- Business
- South China Morning Post
Why the London Metal Exchange's Hong Kong warehouses matter to the city's financial status
The approval of the first four official London Metal Exchange (LME) warehouses in Hong Kong gives a long-awaited boost to the city's ambition of playing a more integral role in global metals trading. Advertisement Many industry leaders, including Tiger Shi, CEO of Bands Financial, and Clara Chan, CEO of Hong Kong-listed Lee Kee Group, believe the development marks a pivotal step in strengthening the city's position as a strategic commodities hub in Asia. The establishment of the LME warehouses in the city will also help align commodity prices in mainland China with the international market, they said. The warehouses mark 'a major step forward in integrating the international and Chinese base metals markets', Shi said in an interview. They also align with efforts to bolster Hong Kong's role in commodities trading, after Chief Executive John Lee Ka-chiu said in October that the city would develop an international gold trading market. Advertisement The LME does not own or operate such warehouses; it authorises companies to store LME-registered metals on behalf of warrant holders.
