TWO of China’s largest commodity exchanges have set up offices in Singapore, as they push to reach global investors via their first overseas outposts.

The Shanghai Futures Exchange on Tuesday officially opened a Singapore representative office under its Shanghai International Energy Exchange arm, which launched China’s first crude oil futures contract in March.

“This is another significant step for (the bourse) as it opens up to the world,” Jiang Yan, chairman of the board at the Shanghai Futures Exchange, said at the opening ceremony.

“Singapore is an important commodities trading and financial hub globally and is an important link in China’s One Belt One Road initiative.”

The Shanghai Futures Exchange hopes to receive approval from the Monetary Authority of Singapore in the next couple of months to market its products in the city state, Jiang said.

Meanwhile, the Dalian Commodity Exchange, which recently opened up its iron ore futures to overseas investors, has set up a representative office in Singapore, an official from the bourse said. He declined to be identified as he was not authorized to speak with media.

Elsewhere, the Shanghai Futures Exchange has registered with Hong Kong regulators and is looking at setting up offices there and in Dubai, as well as planning to collaborate with foreign exchanges to boost trade volumes, Jiang said.

In addition to crude oil, the exchange is also working on opening up its copper and steel rebar futures to global investors, he added.

In China, the exchange is looking at how it could use the free trade zone on the island province of Hainan for the delivery of physical commodities, Jiang said.

The Shanghai Futures Exchange, set up in 1999, has increased the number of products offered on the exchange to 15 from three, covering metals, energy and petrochemicals. The Dalian exchange was established in 1993 and has launched futures contracts for agricultural and industrial commodities.

Singapore is the third-largest commodities trading hub in the world, generating US$1.3 trillion in turnover last year, according to the Monetary Authority of Singapore. (SD-Agencies)