IN a desperate bid to whip up turnover which has been sharply curtailed after an official clampdown, futures exchanges are seeking approval to introduce new contracts for agricultural products and raw materials.
Proposals to trade in futures contracts for products such as wool, barley, dried kelp, coffee and cocoa have been submitted to the China Securities Regulatory Commission (CSRC).
'We've proposed to the CSRC to do futures contracts for barley. But I believe other exchanges have asked to do contracts in dried kelp, cocoa, coffee,' said Chen Rong, vice-president of the Shanghai Cereals and Oils Exchange (SCOE).
SCOE - which opened its doors in June 1993 - has 85 members trading in futures contracts in soya bean, corn, long rice, adzuki, green bean and white beet.
Before a series of government restrictions, on futures trading in several basic agricultural products and raw materials last year, in an attempt to rein in inflation, it dealt with 11 products.
Industry sources said the Suzhou Commodity Exchange recently received in-principle permission to trade in wool contracts while the Dalian Commodity Exchange and the China Zhengzhou Commodity Exchange were awaiting approval for futures contracts in kelp, cocoa and coffee.
'As long as the exchanges are able to meet the legal and practical requirements in new products, and these products do not affect prices of basic food items and raw materials, permission is generally given,' a futures analyst said.