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Futures markets may open to foreigners

Overseas investors may be allowed limited access to trading commodity futures contracts to smooth the path to the establishment of a futures and derivatives exchange, Reuters reported. Foreign institutional investors trade directly in the yuan-denominated A-share markets and bond markets as part of China's Qualified Foreign Institutional Investor scheme, limiting overall investment to US$10 billion. The China Securities Regulatory Commission and Shanghai Futures Exchange are drawing up detailed plans, which need State Council approval before being introduced. A trial of commodities futures trading for foreigners may be launched this year.

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