China’s internationalised futures and options contracts represent one of the most strategically significant access routes for foreign market participants seeking direct exposure to China’s onshore commodity pricing. Unlike the Qualified Foreign Investor (QFI) scheme which requires institutional registration with China’s Securities Regulatory Commission (CSRC), internationalised products allow eligible overseas participants to trade specific contracts on China’s domestic exchanges without CSRC registration, using an overseas intermediary as the access channel.
China has significantly expanded its suite of internationalised contracts across multiple exchanges and commodity sectors. This article provides a comprehensive, up-to-date reference guide covering the mechanics of how internationalised contracts work, who can participate, and why these products matter for institutional and professional investors.
What Are China's Internationalised Futures and Options?
Internationalised futures and options are contracts listed on China’s domestic exchanges that have been specifically designed and approved for participation by overseas market participants. These contracts are structurally adapted to accommodate foreign investors, incorporating features such as:
- Offshore participant eligibility without CSRC QFI registration
- Foreign currency margin and settlement mechanisms (where applicable)
- Cross-border delivery and warehousing structures (available for designated contracts)
- Alignment with international trading conventions and risk management standards
Internationalised contracts trade on the same exchange platforms as domestic contracts and participate in the same onshore price discovery process. This gives foreign participants access to China benchmark prices in key commodities, which are increasingly relevant to global supply chains, physical hedging strategies and cross market arbitrage.
Internationalised vs QFI: Choosing the Right Access Route
For foreign investors evaluating their China market access strategy, the choice between internationalised products and the QFI scheme depends on institutional profile, regulatory capacity and investment objectives.
Internationalised products are well-suited for:
- Commodity trading firms seeking to hedge physical exposure to Chinese benchmark prices
- Prop trading and quantitative funds targeting cross-market arbitrage between onshore and offshore prices
- Foreign institutions that do not hold or wish to obtain QFI registration
- Participants seeking faster onboarding through an overseas intermediary structure
The QFI scheme is better suited for institutions requiring access to a broader product universe including financial futures (e.g. CSI 300, SSE 50) and the full onshore commodity derivatives spectrum. Both access routes may be used concurrently by eligible institutions, subject to applicable regulatory approvals and account arrangements.
Exchanges Offering Internationalised Futures and Options
China’s internationalised derivatives framework provides access to selected contracts across key domestic exchanges. While narrower than the QFI scheme, it enables offshore participants to trade designated products directly via the following venues:
- Industrial metals via Shanghai Futures Exchange (SHFE)
- Energy and global benchmark commodities via Shanghai International Energy Exchange (INE)
- Agricultural and industrial commodities via Dalian Commodity Exchange (DCE)
- Agricultural and chemical commodities via Zhengzhou Commodity Exchange (ZCE)
Notably, SHFE Nickel, INE TSR 20 and Bonded Copper are now accessible to overseas participants, marking a further expansion of China’s internationalised derivatives offering.
How Foreign Investors Access Internationalised Products
Foreign investors can access China’s internationalised futures and options markets through a registered overseas intermediary, a broker that holds connectivity with the relevant Chinese exchange such as Orient Futures Singapore. The onboarding process involves:
- Account opening with a brokerage firm such as Orient Futures Singapore
- Exchange registration as an overseas participant on the relevant Chinese exchange(s) such as SHFE, INE, DCE and ZCE
- Platform connectivity setup and margin account funding
- Commencement of trading on approved internationalised contracts
Why Internationalised Products Matter for Global Market Participants
China’s commodity markets occupy a central role in global price formation across metals, energy and agricultural sectors. For foreign participants, internationalised futures provide:
- Onshore price benchmark access: Contracts such as INE Crude Oil, DCE Iron Ore and ZCE PTA are benchmarks for Asian physical commodity markets. Accessing these prices directly enables tighter hedging correlations versus proxy offshore instruments.
- Arbitrage between onshore and offshore: Price differentials between internationalised contracts and offshore exchanges, to create systematic cross-market arbitrage opportunities for quantitative and prop trading firms.
- Physical supply chain hedging: Commodity trading firms with procurement or supply chains connected to Chinese markets can hedge directly against the price references used in physical contracts, reducing basis risk.
- Energy transition exposure: Products such as INE contracts provide access to markets that are increasingly central to global energy transition supply chains.
- No CSRC registration required: Unlike the QFI scheme, internationalised products are accessible directly through an overseas intermediary, such as Orient Futures Singapore, making them a lower-friction entry point for foreign participants not already registered under QFI.
Access China's Futures Markets via Internationalised Products
China’s continued expansion of its internationalised futures and options suite reflects a deliberate and structured commitment to integrating its domestic derivatives markets with the global financial system. With a growing list of designated contracts spanning energy, agricultural commodities and industrial metals, internationalised products offer foreign investors a direct and accessible entry point into China’s onshore price discovery without the regulatory complexity of QFI registration.
For commodity trading firms managing physical exposure to Chinese benchmark prices, prop and quantitative trading desks seeking cross-market arbitrage opportunities, or foreign institutions looking to establish China market access quickly through a regulated overseas intermediary, internationalised products represent a practical and strategically relevant component of any China-focused derivatives strategy.
Start Trading with Orient Futures Singapore
As a MAS-licensed overseas intermediary with direct connectivity to the Shanghai Futures Exchange (SHFE), Shanghai International Energy Exchange (INE), Dalian Commodity Exchange (DCE), and Zhengzhou Commodity Exchange (ZCE), Orient Futures Singapore provides institutional clients with direct access to China’s internationalised futures and options markets.
To discuss how you can access internationalised products and how Orient Futures Singapore can support your China Market strategy, contact our team for more information.
Internationalised Products: Frequently Asked Questions
Q: Do I need QFI registration to trade internationalised products?
A: No. Internationalised products are accessible to eligible foreign investors through an overseas intermediary such as Orient Futures Singapore without requiring QFI registration with CSRC. This makes them a lower-friction access route compared to the QFI scheme.
Q: How often are new internationalised contracts announced?
A: China’s exchanges and CSRC announce new internationalised contracts periodically. Expansions have accelerated in recent years. Orient Futures Singapore will update the corresponding exchange pages when new contracts are approved.
Q: What currencies can be used for margin and settlement?
A: Currency arrangements vary by contract and exchange. The overseas intermediary can confirm the specific currency requirements for each contract.
Q: How do internationalised product prices compare to offshore benchmarks?
A: Onshore prices for internationalised contracts may trade at a differential to offshore equivalents due to domestic supply–demand dynamics, regulatory factors, and capital flow restrictions. These differences reflect the structural characteristics of each market, and participants may monitor onshore–offshore spreads as part of their overall understanding of market conditions.
