Chinese Administration Approves Industrial Silicon Trading

World’s Largest Producer, Consumer & Exporter Of Industrial Silicon, China Clears Its Futures & Options Contracts On Guangzhou Futures Exchange
China’s green development futures exchange, GFEX will host listing and trading of industrial silicon futures and options. (Illustrative Photo; Photo Credit: Terelayuk/Shutterstock.com)
China’s green development futures exchange, GFEX will host listing and trading of industrial silicon futures and options. (Illustrative Photo; Photo Credit: Terelayuk/Shutterstock.com)
  • China has given its seal of approval for listing and trading of industrial silicon futures and options on GFEX
  • It will improve its prices and help enhance the risk management capabilities of market entities
  • CSRC said the measure will boost the country's low-carbon economic development

The China Securities Regulatory Commission (CSRC) has approved the listing and trading of industrial silicon futures and options on the Guangzhou Futures Exchange (GFEX) with an aim to regulate the price of this raw material and capitalize on opportunities with growing demand as the world increasingly adopts solar energy.

China is the world's largest producer, consumer and exporter of industrial silicon whose price volatility has had major repercussions on the global solar markets since time beginning. It is expected to continue to be so since over three quarters of solar grade silicon production for the world takes place in the Asian nation that itself has a high appetite of the same. And with current production expansions in China the share will only increase.

The regulator explained, "The introduction of industrial silicon futures and options is of positive significance for improving the formation mechanism of industrial silicon prices, enhancing the risk management capabilities of market entities, and helping the country's low-carbon economic development, which is in line with the positioning of Guangzhou Futures Exchange in serving green development."

Following the greenlight, GFEX will now make 'solid preparations' for the listing of industrial silicon futures and options to ensure smooth launch and stable.

GFEX is mainland China's 5th futures exchange focused on green development initiatives. It was launched in 2021 to serve the Guangdong-Hong Kong-Macao Great Bay Area, along with concentrating on the development of the Belt and Road Initiative (BRI).

Apart from industrial silicon, GFEX is also to be the platform for futures and options of lithium, rare earth, platinum and palladium contracts.

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