China rolled out trading of crude oil futures in Shanghai in March. In preparing for this milestone in opening up the domestic market and with the goal of facilitating fund settlements and physical delivery，the State Administration of Foreign Exchange (SAFE) issued its Notice on the Issues of Foreign Exchange Management of Foreign Traders and Overseas Brokerage Institutions Engaged in the Trading of Certain Types of Futures in China (SAFE 2015 document No. 35) and the Reply of State Administration of Foreign Exchange on the Relevant Issues Concerning the Operation of Foreign Exchange Business of Physical Delivery of Crude Oil Futures (SAFE 2018 document No.1). SAFE thereby allowed foreign counterparties to participate in specific types of futures transactions within Chinese territory. In addition，SAFE made clear provisions on issues related to specific varieties of futures for the first time. This was a breakthrough in promoting China’s futures products on the international stage.

Opening Up China's Commodity Futures Trade

The development of the futures market plays an important role in improving China's financial system and accelerating the upgrading of the nation's industrial structure. China’s futures market got its start in the late 1980s and underwent a pilot stage and a period of significant disruptions，followed by a market rectification and finally healthy development. Similar to commodity futures elsewhere，China's futures markets started with agricultural products aimed at individual investors. But for much of this time，only domestic parties were allowed to participate. This created a significant impediment，denying these markets the chance to become truly international and thwarting the ability to exercise pricing power in the global futures market.