Chinese Market Access

Chinese Market Access

We don't just provide investors with access to the Chinese commodities market - we guide them to ensure they can successfully execute their strategies.

China has a fundamentally different dynamic than the West. Exploiting the changes in that dynamic provides excellent trading opportunities, both for directional and arbitrage strategies.

As an approved Overseas Intermediary, BANDS Financial serves as the client counterparty and is regulated by the SFC in Hong Kong.

China's Commodities Markets

China is the single largest market for commodities futures, with a combined trading volume of over 5 billion lots in 2020. This marks an increase of over 50% from 2019 and China thus represents half of the global commodities futures market.

While this market has been largely closed off to foreign investors, the Chinese exchanges have been engaged in a gradual opening-up process.

Currently, there are three futures exchanges, the Shanghai International Energy Exchange (INE), the Dalian Commodity Exchange (DCE), and the Zhengzhou Commodity Exchange (ZCE), that allow international investors to trade designated commodity futures contracts through the Overseas Intermediary (OI) route.

> 5 Billion

Annual trade volume on the Chinese commodity exchanges

50 %

Year-on-year growth in trade volume 2019 - 2020

No 1

China is the largest consumer of commodities globally

9

The number of internationally accessible commodity contracts

Accessing the Chinese Market

An Overseas Intermediary is an approved foreign futures broker, who, using a domestic futures broker, can facilitate foreign investors to trade through to the designated mainland futures contracts. Using the Overseas Intermediary route resolves the issues that have up to this point suppressed the development of trading Chinese futures internationally.

All internationally available contracts are listed below along with their contract specifications. To keep up-to-date with the development of the Chinese market, subscribe to John's daily Letter from Shanghai.

The OI Route Allows:

  • Trading free of Chinese taxes
  • Use of USD as initial margin
  • Direct access to the exchange
  • Fund transfer in and out of China within 2h
Card image cap PTA
Product Copper Cathode
Contract Size 5 metric tons (MT)/lot
Price Quotation Yuan (RMB)/MT (exclusive of tax and customs duty)
Minimum Price Fluctuation 10 Yuan/MT
Daily Price Limit Within ± 6% of the settlement price of the preceding trading day
Listed Contracts Monthly contracts for the next 12 consecutive months
Trading Hours

T: 09:00-10:15; 10:30-11:30; 13:30-15:00

T+1: 21:00-01:00

Beijing Time (GMT+8)

Last Trading Day The 15th day of the delivery month (postponed accordingly if it is a national holiday or weekend. The INE reserves the right to adjust the last trading day in accordance with national holidays and weekends.)
Delivery Period 5 consecutive trading days after the last trading day of the contract month
Delivery Unit 25 tons
Grades and Quality Specifications Copper cathodes meeting the standards for Grade A copper (Cu-CATH-1) under GB/T 467-2010 or Cu-CATH-1 under BS EN 1978:1988
Delivery Venues Delivery Storage Facilities designated by the INE
Settlement Type Physical delivery
Product Symbol BC
Listing Exchange INE
Margin Requirement

Long Speculation: 8% of contract value
Short Speculation: 8% of contract value
Long Hedging: 8% of contract value
Short Hedging: 8% of contract value

Product Low Sulfur Fuel Oil
Contract Size 10 metric tons (MT)/lot
Price Quotation Yuan (RMB)/MT (exclusive of tax and customs duty)
Minimum Price Fluctuation 1 Yuan/MT
Daily Price Limit Within ± 8% of the settlement price of the preceding trading day
Listed Contracts Monthly contracts for the next 12 consecutive months
Trading Hours

T: 09:00-10:15; 10:30-11:30; 13:30-15:00

T+1: 21:00-23:00

Beijing Time (GMT+8)

Last Trading Day The last trading day of the month prior to the delivery month (postponed accordingly if it is a national holiday or weekend. The INE reserves the right to adjust the last trading day in accordance with national holidays and weekends.)
Delivery Period 5 consecutive trading days after the last trading day of the contract month
Delivery Unit 10 tons
Grades and Quality Specifications Refer to the Appendix of the Low Sulfur Fuel Oil Futures Handbook for detailed quality standards
Delivery Venues Delivery Storage Facilities designated by the INE
Settlement Type Physical delivery
Product Symbol LU
Listing Exchange INE
Margin Requirement

Long Speculation: 10% of contract value
Short Speculation: 10% of contract value
Long Hedging: 10% of contract value
Short Hedging: 10% of contract value

Product Medium Sour Crude Oil
Contract Size 1000 barrels/lot
Price Quotation Yuan (RMB)/barrel (exclusive of tax and customs duty)
Minimum Price Fluctuation 0.1 Yuan/barrel
Daily Price Limit Within ± 8% of the settlement price of the preceding trading day
Listed Contracts Monthly contracts for the next 12 consecutive months followed by 8 quarterly contracts
Trading Hours

T: 09:00-10:15; 10:30-11:30; 13:30-15:00

T+1: 21:00-02:30

Beijing Time (GMT+8)

Last Trading Day The last trading day of the month prior to the delivery month (postponed accordingly if it is a national holiday or weekend. The INE reserves the right to adjust the last trading day in accordance with national holidays and weekends.)
Delivery Period 5 consecutive trading days after the last trading day of the contract month
Delivery Unit 1000 barrels
Grades and Quality Specifications Medium sour crude oil with the quality specifications of API 32.0 degrees and sulfur content 1.5% by weight.
The deliverable grades and the price differentials will be stipulated separately by the INE.
Delivery Venues Delivery Storage Facilities designated by the INE
Settlement Type Physical delivery
Product Symbol SC
Listing Exchange INE
Margin Requirement

Long Speculation: 10% of contract value
Short Speculation: 10% of contract value
Long Hedging: 10% of contract value
Short Hedging: 10% of contract value

Product Crude Oil Options
Underlying INE Crude Oil Futures (SC) contract
Contract Types Call and Put Options
Contract Size 1 SC contract (1000 barrels)
Minimum Price Fluctuation 0.05 Yuan/barrel
Price Quotation Yuan (RMB)/barrel (exclusive of tax and customs duty)
Daily Price Limit Same as that for the SC contract
Listed Contracts Options contracts will be listed for the nearest two consecutive months and, when the open interest of the underlying futures contract after daily clearing reaches a specific threshold separately announced by the INE, for later months on the second trading day thereafter.
Trading Hours

T: 09:00-10:15; 10:30-11:30; 13:30-15:00

T+1: 21:00-02:30

Beijing Time (GMT+8)

Last Trading Day The 13th-to-last trading day of the month prior to the delivery month of the underlying SC contract (postponed accordingly if it is a national holiday or weekend. The INE reserves the right to adjust the last trading day in accordance with national holidays and weekends.)
Expiration Date Same as the last trading day
Strike Price

The range of the strike prices is the previous trading day's settlement price of the SC contract plus or minus 1.5 times the current day's price limit. The strike price interval is 2 Yuan/barrel if strike price ≤ 250 Yuan/barrel; 5 Yuan/barrel if 250 Yuan/barrel < strike price ≤ 500 Yuan/barrel; 10 Yuan/barrel if strike price > 500 Yuan/barrel

Option Style

American. Buyers may submit an exercise request before the expiration date and an exercise or abandonement request before 15:30 on the expiration date.

Contract Symbol Call option: SC-Contract Month-C-Strike Price
Put option: SC-Contract Month-P-Strike Price
Listing Exchange INE
Margin Requirement Refer to Chapter VI of the INE Guidelines on Trading Options for details
Product TSR 20
Contract Size 10 metric tons (MT)/lot
Price Quotation Yuan (RMB)/MT (exclusive of tax and customs duty)
Minimum Price Fluctuation 5 Yuan/MT
Daily Price Limit Within ± 8% of the settlement price of the preceding trading day
Listed Contracts Monthly contracts for the next 12 consecutive months
Trading Hours

T: 09:00-10:15; 10:30-11:30; 13:30-15:00

T+1: 21:00-23:00

Beijing Time (GMT+8)

Last Trading Day The 15th day of the delivery month (postponed accordingly if it is a national holiday or weekend. The INE reserves the right to adjust the last trading day in accordance with national holidays and weekends.)
Delivery Period 5 consecutive trading days after the last trading day of the contract month
Delivery Unit 10 tons
Grades and Quality Specifications Refer to Appendix 1 of the Manual for TSR 20 Futures Contract Trading for detailed quality standards.
Delivery Venues Delivery Storage Facilities designated by the INE
Settlement Type Physical delivery
Product Symbol NR
Listing Exchange INE
Margin Requirement

Long Speculation: 10% of contract value
Short Speculation: 10% of contract value
Long Hedging: 10% of contract value
Short Hedging: 10% of contract value

Product Iron Ore
Contract Size 100 metric tons (MT)/lot
Price Quotation Yuan (RMB)/MT (exclusive of tax and customs duty)
Minimum Price Fluctuation 0.5 Yuan/MT
Daily Price Limit Within ± 10% of the settlement price of the preceding trading day
Listed Contracts Monthly contracts for the next 12 consecutive months
Trading Hours

T: 09:00-10:15; 10:30-11:30; 13:30-15:00

T+1: 21:00-23:00

Beijing Time (GMT+8)

Last Trading Day The 10th day of the contract month (postponed accordingly if it is a national holiday or weekend. The DCE reserves the right to adjust the last trading day in accordance with national holidays and weekends.)
Delivery Period 3 consecutive trading days after the last trading day of the contract month
Grades and Quality Specifications Iron Ore Delivery Quality Standard of the DCE (F/DCE P002-2011)
Delivery Venues Delivery Storage Facilities designated by the DCE
Settlement Type Physical delivery
Product Symbol I
Listing Exchange DCE
Margin Requirement

Long Speculation: 12% of contract value
Short Speculation: 12% of contract value
Long Hedging: 10% of contract value
Short Hedging: 10% of contract value

Product RBD Palm Olein
Contract Size 10 metric tons (MT)/lot
Price Quotation Yuan (RMB)/MT (exclusive of tax and customs duty)
Minimum Price Fluctuation 2 Yuan/MT
Daily Price Limit Within ± 8% of the settlement price of the preceding trading day
Listed Contracts Monthly contracts for the next 12 consecutive months
Trading Hours

T: 09:00-10:15; 10:30-11:30; 13:30-15:00

T+1: 21:00-23:00

Beijing Time (GMT+8)

Last Trading Day The 10th day of the contract month (postponed accordingly if it is a national holiday or weekend. The DCE reserves the right to adjust the last trading day in accordance with national holidays and weekends.)
Delivery Period 3 consecutive trading days after the last trading day of the contract month
Grades and Quality Specifications RBD Palm Olein Delivery Quality Standard of the DCE (F/DCE P002-2011)
Delivery Venues Delivery Storage Facilities designated by the DCE
Settlement Type Physical delivery
Product Symbol P
Listing Exchange DCE
Margin Requirement

Long Speculation: 10% of contract value
Short Speculation: 10% of contract value
Long Hedging: 8% of contract value
Short Hedging: 8% of contract value

Product RBD Palm Olein Options
Underlying RBD Palm Olein Futures contract
Contract Types Call and Put Options
Contract Size 1 P contract (10 MT)
Minimum Price Fluctuation 0.5 Yuan/barrel
Price Quotation Yuan (RMB)/MT (exclusive of tax and customs duty)
Daily Price Limit Same as that for the P contract
Listed Contracts Monthly contracts for the next 12 consecutive months
Trading Hours

T: 09:00-10:15; 10:30-11:30; 13:30-15:00

T+1: 21:00-23:00

Beijing Time (GMT+8)

Last Trading Day The 5th trading day of the month prior to the delivery month of the underlying P contract (postponed accordingly if it is a national holiday or weekend. The DCE reserves the right to adjust the last trading day in accordance with national holidays and weekends.)
Expiration Date Same as the last trading day
Strike Price

The range of the strike prices is the previous trading day's settlement price of the P contract plus or minus 1.5 times the current day's price limit. The strike price interval is 50 Yuan/MT if strike price ≤ 5000 Yuan/MT; 100 Yuan/MT if 5000 Yuan/MT < strike price ≤ 10000 Yuan/MT; 200 Yuan/MT if strike price > 10,000 Yuan/MT

Option Style

American. Buyers may submit an exercise request before the expiration date and an exercise or abandonement request before 15:30 on the expiration date.

Contract Symbol Call option: P-Contract Month-C-Strike Price
Put option: P-Contract Month-P-Strike Price
Listing Exchange DCE
Margin Requirement Refer to the DCE for details
Product Purified Terephthalic Acid (PTA)
Contract Size 5 metric tons (MT)/lot
Price Quotation Yuan (RMB)/MT (exclusive of tax and customs duty)
Minimum Price Fluctuation 2 Yuan/MT
Daily Price Limit Within ± 4% of the settlement price of the preceding trading day
Listed Contracts Monthly contracts for the next 12 consecutive months
Trading Hours

T: 09:00-10:15; 10:30-11:30; 13:30-15:00

T+1: 21:00-23:00

Beijing Time (GMT+8)

Last Trading Day The 10th day of the contract month (postponed accordingly if it is a national holiday or weekend. The DCE reserves the right to adjust the last trading day in accordance with national holidays and weekends.)
Delivery Period 3 consecutive trading days after the last trading day of the contract month
Grades and Quality Specifications Refer to the Detailed Rules for Futures Delivery of the Zhengzhou Commodity Exchange for details
Delivery Venues Delivery Storage Facilities designated by the ZCE
Settlement Type Physical delivery
Product Symbol TA
Listing Exchange ZCE
Margin Requirement

As of Listing: 5% of contract value
From the 16th calendar day to the last calendar day of the month preceding the delivery month: 10% of contract value
Delivery Month: 20% of contract value

As an Overseas Intermediary from the very beginning, we offer our clients unmatched experience and insight into the Chinese market

In February 2018, BANDS was approved as an inaugural Overseas Intermediary for the Shanghai International Energy Exchange (INE), the first-ever internationalised Chinese futures exchange - enabling BANDS to offer overseas clients trading access to the new Crude Oil contract. We proudly participated in its launch with our clients trading on the opening day.

In April 2018, BANDS was approved by the Dalian Commodity Exchange (DCE) as an OI and we were delighted to represent 15% of all overseas clients active on the opening day of the DCE's iron ore contract internationalisation on 4th May 2018.

The Zhengzhou Commodity Exchange (ZCE) then approved BANDS in November 2018, enabling BANDS clients to participate in the first internationalised futures contracts of the Zhengzhou exchange - PTA contracts.

We have since participated in the launch of further OI contracts, most notably the INE Bonded Copper contract in November 2020. BANDS was also recently approved as an Overseas Special Brokerage Participant by the INE. This allows us to provide direct trading access to the exchange in Shanghai. To learn more, visit our Solutions page or take a look at our Accessing the Chinese Market video series and FAQ.

Key Features

  • Tax Free: foreign participants pay no Chinese taxes
  • International Platform: trading, delivery, and clearing are open to qualified investors globally
  • Duty-Free Price Trading: trading prices are net prices exclusive of duties or VAT
  • Bonded Delivery: physical delivery based on bonded storage facilities

Basic Clearing Rules

  • Quoted and settled in RMB
  • Based on daily mark-to-market (cash cleared)
  • US dollar can be used as IM by foreign investors
  • Foreign exchange conversion can only be utilized as a consequence of futures trading

Margin Deposit

Warehouse receipts or USD can be used as collateral, as alternatives to RMB, subject to:

  • Standard warehouse receipts are valued as margin deposit, using the daily settlement price of the latest delivery month contract to calculate the market value, while no more than 80% of market value can be used as margin deposit. No validity period is provided for crude oil standard warrants.
  • USD IM is discounted at a 5% haircut. The FX rate is subject to the mid-exchange rate quoted by the China Foreign Exchange Trade System on the day the transaction occurs.