ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Economy

Fish futures can provide new financial tool for China

Exchanges ponder hedging of seafood risks

| China

China saw an influx of speculative capital into commodities exchanges in 2016. Such hot-money rushes are caused by a dearth of alternative investment options. But if the central government were to allow sensible speculation, a planned Chinese seafood futures contract for trade on the Dalian Commodity Exchange could provide a new asset class for investors and a hedging tool for the industry.

The current investment environment is uninspiring. Savings in commercial banks earn less than inflation, and the housing market is bubbling over as closed capital accounts prevent convertibility to foreign currency. Investors are left with the casino-like securities markets and the trusty mattress.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more