In a step towards increasing the pricing power over globally traded commodities and opening up financial markets, China launched the yuan-dominated crude oil option contracts which are the first in the energy sector that are available to foreign investors, reported Caixin.
On Monday, the contracts began trading on the Shanghai International Energy Exchange (INE) after the launch of yuan-dominated palm oil options on the Dalian Commodity Exchange on Friday, also open to foreign investors.
China is the world’s largest importer of crude oil and second-largest buyer of palm oil. The country pledged to develop its derivatives market, provide greater access to foreign investors, and increase influence on global commodity markets.
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