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.
