Oct 23, 2020 07:46 PM

Exclusive: Guangzhou to Set Up Futures Exchange by Year-End, Sources Say

What’s new: China is planning to open a new futures exchange in the southern metropolis of Guangzhou in mid-December, knowledgeable sources told Caixin.

If all goes to plan, the exchange will become the Chinese mainland’s first new futures exchange in 14 years, and the fifth futures exchange managed by the China Securities Regulatory Commission (CSRC).

The sources said that the new exchange will get equity investments from some other futures exchanges.

What’s the background: The road map of the Guangdong-Hong Kong-Macao Greater Bay Area released in February 2019 included a plan to set up a futures exchange in Guangzhou focused on trading carbon emissions futures.

Earlier this month, the CSRC said it decided (link in Chinese) to set up the Guangzhou futures exchange upon approval from the State Council, China’s cabinet.

However, the Ministry of Ecology and Environment has suggested that the exchange remove carbon emissions futures from its plan as the market isn’t mature enough to accommodate such products, according to a notice (link in Chinese) published on the Guangzhou city government’s website.

The Guangzhou government still pushed the plan forward, but also plans to ask the State Council to allow the exchange to trade other futures in addition to those related to carbon emissions, according to the notice.

China currently has four futures exchanges — the China Financial Futures Exchange, which mainly hosts bond and stock futures products, the Dalian Commodity Exchange, the Shanghai Futures Exchange and the Zhengzhou Commodity Exchange. The latter three primarily accommodate commodity futures products covering nonferrous metals, agricultural products, chemicals and energy.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full Caixin article in Chinese, click here.

Contact reporter Timmy Shen ( and editor Gavin Cross (

Support quality journalism in China. Subscribe to Caixin Global starting at $0.99.

You've accessed an article available only to subscribers
Share this article
Open WeChat and scan the QR code