QFII may expand to include commodity futures

The Shanghai Futures Exchange (SFE) is studying a plan to expand the Qualified Foreign Institutional Investor (QFII) program to allow foreigners to buy commodity futures. Lao Guangxiong, the exchange’s deputy CEO, revealed the existence of the plan during an interview with Bloomberg on the sidelines of a conference in Shanghai. Copper, aluminum, zinc, gold, rubber and fuel oil contracts are traded on the SFE and Lao expects futures for steel products to be introduced this year. Other commodities are traded in Dalian and Zhengzhou. Foreign institutions granted investment quotas under the QFII scheme are currently only allowed to buy Chinese stocks and bonds.