China exchange growth signals move east in commodities trading

To mark Asia Risk's twentieth anniversary we look at how growth in China's onshore futures market signals a change in the global derivatives landscape

Twenty-five years ago, the Chinese government began to open the gates on commodity futures trading, unleashing a pent-up demand that saw the creation of more than 40 domestic exchanges and releasing huge levels of liquidity. By 1998 the authorities had reasserted control and chopped the number of exchanges to three national champions: the China Zhengzhou Commodity Exchange (CZCE), the Dalian Commodity Exchange (DCE) and the Shanghai Futures Exchange (SHFE).

And within 16 years of that