The Dalian Commodity Exchange (DCE) was approved to trade live pig futures, the first financial derivative based on a live animal in the world’s top pork-producing country, reported Caixin.
The introduction of hog futures is an important step for the country’s futures market to serve the development of the real economy, the China Securities Regulatory Commission said in a statement on its website.
Hog futures will play a positive role in improving the mechanism of pig pricing formation, improving the risk management ability of market players and boosting the development of the pork industry, the regulator said.
The exchange said the degree of standardization of hog breeds is increasing and live pig trading is active, which creates mature conditions for the new animal futures.