In a move set to reshape global commodity trading, the Shanghai Futures Exchange (SHFE) has announced the addition of four new contracts to its Qualified Foreign Institutional Investor (QFI) program, starting 10 Sept 2025. This expansion, which includes bitumen futures and options contracts, fuel oil options contracts and woodpulp options contracts, marks a significant step in the continued internationalization of China’s commodity markets.
By making these key contracts accessible to a global audience, SHFE is not only deepening its market liquidity but also creating a host of new opportunities for international traders.
New Contracts, New Opportunities
The addition of these four contracts provides international participants with new tools to manage risk and implement diverse trading strategies within one of the world’s most dynamic markets.
Bitumen Futures & Options: Bitumen is a critical component in infrastructure and construction. The introduction of its futures and options contracts allows companies with exposure to this material, from oil refiners to construction firms, to effectively hedge against price volatility. For proprietary trading firms, these contracts offer new arbitrage opportunities, particularly against similar products on other exchanges given China’s massive domestic consumption and production.
Fuel Oil Options: Fuel oil is a widely used industrial commodity, and its new options contract provides a flexible way to manage risk without the obligation of a futures contract. This is particularly valuable for shippers, power generators, and other large consumers who can now protect against price spikes while maintaining exposure to favorable price movements.
Woodpulp Options: The woodpulp options contract is a key development for the global paper and packaging industry. It offers producers and consumers a sophisticated tool to manage their commodity risk, while also creating new opportunities for market makers and speculators to provide liquidity and capitalize on price spreads.
A Gateway for Global Traders
The expansion of the QFI program simplifies access to the Chinese market, which can otherwise be complex to navigate. For international firms, trading through a QFI-approved broker removes the need for direct exchange memberships and extensive local infrastructure. This is particularly beneficial for:
- Commercial Hedgers: Global corporations with supply chains that touch China can now directly hedge their exposure to key industrial materials, reducing operational risk and securing profit margins.
- Proprietary Trading Firms: These firms can leverage their technological expertise to access a new pool of liquidity and engage in high-frequency trading and arbitrage strategies.
- Asset & Fund Managers: The new contracts provide more instruments for diversification, allowing fund managers to build sophisticated strategies and gain exposure to China’s domestic economic growth.
Overall, the SHFE’s move is a clear signal that the world’s second-largest economy is committed to opening its markets. This creates a new gateway for global traders to participate directly in the country’s commodity sector and presents a compelling case for building a strong brokerage relationship with an institution that has deep expertise and connectivity in this region. The four new contracts are available for QFI Investors to trade from 10 September 2025.
Start Trading with Orient Futures Singapore
Being an Overseas Intermediary of Shanghai International Energy Exchange (INE), Dalian Commodity Exchange (DCE), and Zhengzhou Commodity Exchange (ZCE), when foreign clients participate in internationalised futures contracts in these Chinese markets with us, they have direct access to trading, clearing, and settlement. Our parent company, Shanghai Orient Futures, is the largest broker in terms of aggregated volume across the five regulated exchanges in China.
Orient Futures Singapore also currently holds memberships at the Singapore Exchange (SGX), Asia Pacific Exchange (APEX), and ICE Futures Singapore (ICE SG). Starting August 2023, corporate clients can also gain access to the B3 Exchange through us, opening additional trading avenues.
Expect streamlined processes and an easy-to-use interface designed for minimal latency, accompanied by our team’s round-the-clock availability on trading days to provide assistance for all your trading needs.
