China will soon add a new commodity futures contract as the country pushes forward development of its commodity derivatives market.
The China Securities Regulatory Commission (CSRC) on Friday said cotton yarn futures will start trading on the Zhengzhou Commodity Exchange from August 18. Trading tests will be conducted on August 5 and 12 prior to the launch.
In an earlier note, the CSRC said cotton yarn futures together with cotton futures, which are already available on the market, would help the cotton industry hedge against risks caused by price fluctuations.
China has been developing its commodity derivatives market with a plan to gradually open it to foreign investors.