China’s futures markets offer two structurally distinct access paths for foreign participants: the internationalised route, where designated contracts are open directly to overseas entities, and the domestic route via the Qualified Foreign Investor (QFI) scheme, which grants access to a broader product set under regulatory conditions. The right path depends on the contracts required, the client’s regulatory footprint, capital controls tolerance, and operational infrastructure. Both routes are complementary frameworks serving different institutional needs.
At a Glance
- China’s futures markets are split into two access routes: China’s futures markets are accessible through two distinct frameworks: internationalised contracts traded through offshore access channels and domestic contracts accessed via the QFI scheme.
- Internationalised contracts trade in CNH (offshore renminbi) or USD and settle through offshore clearing chains, reducing onshore capital controls friction, subject to regulatory or broker requirements.
- While the internationalised route provides access to designated contracts, the QFI scheme opens access to a much broader range of onshore futures and options products, subject to onshore account infrastructure and regulatory requirements.
- Overseas Intermediary (OI) status, held by brokers such as Orient Futures Singapore, is the gateway for foreign participants to access SHFE, INE, DCE, and ZCE via the internationalised route.
The structural choice between routes has implications for costs, currency exposure, and regulatory compliance.
About the Author: Orient Futures Singapore holds OI status on SHFE, INE, DCE and ZCE, complemented by QFI access across all six Chinese futures exchanges, including GFEX and CFFEX, making it one of the few MAS-licensed brokers positioned across both access routes described in this guide.
What is the Internationalised Route for China Futures?
The internationalised route refers to a set of designated futures contracts that Chinese exchanges have opened directly to foreign participants without requiring onshore entity registration. These contracts are listed on specific venues, quoted and settled in internationally accessible currencies (CNH or USD), and cleared through approved overseas intermediaries.
Internationalised contracts currently include products such as:
- SHFE: Nickel
- INE: Crude oil, Low-Sulphur Fuel Oil, Bonded copper
- DCE: Iron ore, RDB Palm Olein
- ZCE: PTA, Polyester Staple Fiber, Para-Xylene
Foreign traders access these contracts through an Overseas Intermediary (OI), a designation granted by each exchange to qualifying brokers. Orient Futures Singapore holds OI status on SHFE, INE, DCE, and ZCE, acting as the direct conduit for institutional clients into these internationalised contracts. Detailed product listings for each exchange are available on the Orient Futures Singapore Internationalised Route guide and the individual exchange pages for SHFE, INE, DCE and ZCE.
What is the QFI (Qualified Foreign Investor) Domestic Route?
Building on the internationalised framework above, the QFI scheme represents the broader domestic access path. Established under CSRC and SAFE regulations, the QFI scheme permits qualified foreign institutional investors to trade onshore-listed futures and options contracts that are not available on the internationalised route.
Key structural features of the QFI route include:
- Participation requires CSRC registration as a QFI and appointment of a qualified domestic futures company member as the clearing broker.
- Capital flows are subject to SAFE oversight, with remittance and repatriation governed by foreign exchange rules.
- QFI access applies to all six exchanges, which include SHFE, INE, DCE, ZCE, GFEX and CFFEX.
- Contracts are denominated in CNY (onshore renminbi), requiring currency conversion mechanics absent from the internationalised route.
- Access extends to CFFEX (financial futures, including CSI 300 and government bond futures) and GFEX (lithium carbonate, poly silicon), which have not internationalised-route equivalents at present.
Orient Futures Singapore facilitates QFI access to all six mainland Chinese futures exchanges for eligible institutional clients, including CFFEX and GFEX, in addition to SHFE, INE, DCE and ZCE. Further information is available in our guide to the QFI Scheme.
How Do the Two Routes Differ Structurally?
The structural differences between the two routes affect every layer of an institutional trading operation, from account opening to post-trade settlement.
| Dimension | Internationalised Route | Qualified Foreign Investor (Domestic Route) |
|---|---|---|
| Account Structure | Offshore account via Overseas Intermediary (OI) broker | Onshore account; CSRC registration required |
| Currency | CNH or USD (subject to individual product and/or broker requirements) | CNY (onshore) |
| Capital Controls | Minimal; operates outside SAFE framework | Subject to SAFE remittance and repatriation rules and regulations |
| Product Scope | Designated internationalised contracts only | Expanded product range, which includes products from key exchanges such as SHFE, INE, DCE, ZCE, GFEX and CFFEX |
| Onboarding Complexity | Moderate; OI broker-led onboarding and regulatory requirements | Higher; CSRC registration, onshore clearing setup |
Which Route is More Suitable for Commodity Traders?
Stepping back from the structural detail, a practical question for commodity-focused institutions is which route delivers the better hedge. The answer depends largely on whether the exposure is tied to an onshore Chinese price benchmark or to an internationally traded equivalent.
- Internationalised contracts (e.g., INE crude oil): Suitable for participants whose physical exposure references CNH-denominated or internationally priced benchmarks. The currency structure reduces regulatory friction but introduces a basis against domestic pricing.
- QFI domestic contracts: QFI domestic contracts enable exposure to onshore Chinese price benchmarks, which can be important for market participants whose commercial activities are linked to domestic Chinese pricing.
About Orient Futures Singapore
Orient Futures Singapore is a MAS-licensed brokerage (CMS100869) and a subsidiary of Orient Futures, one of the largest futures brokers by aggregated volume across mainland Chinese commodity exchanges.
Orient Futures Singapore holds Overseas Intermediary status on SHFE, INE, DCE, and ZCE, and facilitates access to all six exchanges, including GFEX and CFFEX via the QFI scheme, giving institutional clients a single point of access across both China futures access routes described in this guide.
Beyond China, Orient Futures Singapore is a clearing member of SGX, ICE Futures Singapore, and APEX, and is the first Asian broker to hold access to Brazil’s B3 exchange for both derivatives and securities.
Institutional clients benefit from 24/5 support, co-location and low-latency execution infrastructure, as well as access to a proprietary research platform, Finoview, which provides research on China and the key global markets..
Access China's Futures Markets Through the Right Structure
Whether your institution requires access to internationalised contracts via the OI route or a broader range of domestic products through the QFI scheme, Orient Futures Singapore can help guide you through the appropriate market access framework.
Contact Orient Futures Singapore to learn more.
Frequently Asked Questions
Q: Can a foreign institution trade both routes simultaneously?
Yes. There is no regulatory prohibition on holding both an OI-facilitated offshore account for internationalised contracts and a QFI account for domestic contracts. Many institutional participants use both in parallel to access the full Chinese futures product universe.
Q: Does Orient Futures Singapore require clients to be based in a specific country to access China futures?
No. Orient Futures Singapore serves global institutional clients, subject to applicable onboarding, compliance, and regulatory requirements.
Q: What margin currency is used for internationalised contracts?
Currency arrangements vary by contract and exchange. The overseas intermediary can confirm the specific currency requirements for each contract.
Q: Are CFFEX financial futures (e.g., CSI 300 futures) accessible via the internationalised route?
No. CFFEX products, including equity index and bond futures, are only accessible via the QFI scheme. They are not listed as internationalised contracts. See the detailed CFFEX page here.
Q: How long does onboarding take for the QFI route versus the internationalised route?
Onboarding timelines depend on the institution’s profile and documentation requirements. The internationalised route generally involves a simpler onboarding process, while the QFI route requires additional regulatory and operational arrangements. Contact Orient Futures Singapore to discuss the onboarding process and determine the most suitable access route for your institution.
