Zhengzhou Commodities Exchange in Henan province has issued a new futures contract for high quality wheat, the Financial Times said. This is China's first new futures contract to be launched for five years and is likely to be quickly followed by other contracts. The Zhengzhou exchange plans to introduce a contract in cotton futures, while Shanghai exchange hopes to follow its soonto- be-launched contract in fuel oil futures with contracts in crude oil and other petroleum products. The Dalian exchange in the northeastern province of Liaoning plans to introduce a contract in corn futures.
These moves signal a return to favour for commodities trading in China, which had been in the doldrums since a crackdown on speculation and sharp practice in commodities markets in the mid-1990s.
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