Foreign investors may trade iron ore futures

    CHINA is planning to open up the world’s most liquid iron ore futures to overseas investors, an official with the Dalian Commodity Exchange said Friday, a move that would increase China’s sway over pricing as the world’s top iron ore consumer.

    The Dalian exchange is applying for approval from the China Securities Regulatory Commission to allow offshore investors to directly trade in the raw material, said Jing Mingyi, a manager with the exchange’s industrial products department. “We are actively working on it and hope to finish the relevant work regarding the trading system, connection with banks, deposit center and futures firms.”

    Nigeria considers selling Chinese Panda bonds

    NIGERIA is considering selling Chinese Panda bonds to help finance the 2016 budget, its finance minister said Saturday.

    The country is also looking to sell Eurobonds, apart from loans from multilateral agencies, Kemi Adeosun said. “Initially, we were looking simply at the Eurobond market but then we began to explore opportunities in the renminbi [yuan] market, so there is a possibility of issuing a Panda bond,” she said.

    Economists urge adjustment to reserve ratios

    THE People’s Bank of China should gradually adjust the amount of deposits that banks lock away as reserves in accordance with the nation’s international balance of payments situation, according to economists at the central bank.

    The required reserve ratios for commercial banks should be raised or lowered to meet the country’s macroeconomic demands, researchers led by Ma Jun, chief economist at the central bank’s research bureau, wrote in a working paper published on the central bank’s website. China should develop new policy tools to improve the interest rate mechanism and further develop derivatives, including government bond futures and interest rate swaps to allow banks hedge their risks, they added.

    COSCO in deal to operate Greece’s Piraeus port

    GREECE signed an agreement Friday to sell a 67 percent stake in operating its biggest port to China COSCO Shipping Corp.

    COSCO was the sole bidder for the stake in Piraeus Port Authority (PPA), a listed company that has a concession to operate the port until 2052. Greece will retain a 7 percent stake in PPA and private investors will hold the remainder. COSCO’s 368.5 million euro (US$420 million) offer was approved in January.