ZHENGZHOU, Sept. 7 (Xinhua) -- Global investors have been actively engaging in the trading of the PTA (purified terephthalic acid) futures on China's Zhengzhou Commodity Exchange (ZCE), data showed.
Since the country allowed foreign access to the PTA futures last November, a total of 115 overseas investors have opened accounts, while their combined trading of the contracts now accounts for about 8 percent of the daily trading volume, according to Wang Yamei, deputy general manager with the ZCE.
PTA, a commodity chemical and textile raw material, is a downstream product of petroleum and one of the most important bulk organic raw materials in China.
As the world's largest producer and consumer of PTA, China listed PTA futures on the ZCE in 2006. The contracts obligate investors to buy or sell PTA at a predetermined price at a specified time, helping investors mitigate risks of price volatilities.
As the only futures contracts on polyester products, the PTA contracts offer global firms in the polyester businesses a tool to hedge against price fluctuations and maximize their profits.
PTA futures are especially attractive to foreign investors in Southeast Asia, the United States, as well as countries in Europe, according to Wang.
China has been stepping up its efforts to develop and open up the domestic commodity futures market, introducing new varieties of futures contracts in recent years while allowing foreign investors wider access to contracts including crude oil and iron ore.
A single purchase
