China Opens Nickel and Lithium Futures Markets to Foreign Investors

In a move aimed at deepening the opening of commodity markets and strengthening China's role as a global pricing center for strategic metals, China has announced the opening of the nickel and lithium futures markets to foreign investors, according to Bloomberg.

Under the decision, international investors will be able to trade nickel contracts on the Shanghai Futures Exchange, as well as lithium carbonate contracts on the Guangzhou Futures Exchange, as part of a broader expansion that includes making a number of commodity derivative products available to foreign capital.

This step comes at a time when global demand for nickel and lithium is increasing, as they are vital metals for battery industries, electric vehicles, and clean energy. It may enhance market liquidity, increase China's influence on the global pricing of these commodities, and provide investors with new hedging tools in the mineral supply chains linked to the energy transition.