The Shanghai natural rubber futures contract officially hit the Osaka Exchange in Japan on Monday, marking a milestone in capital market collaboration between the Chinese mainland and Japan. For the first time, domestic rubber prices from the Chinese mainland are available on an overseas platform, giving global traders a new benchmark.
Under the licensing deal, the contract is cash-settled at the SHFE delivery settlement price multiplied by 100 Japanese yen, with no exchangeârate conversions or duty calculations required. This streamlined design offers industriesâfrom auto tire makers to sports equipment brandsâa transparent and efficient risk management tool for hedging, crossâmarket arbitrage, asset allocation, and trading.
Lu Dongsheng, CEO of SHFE, said at the ceremony that the cooperation is 'a concrete step taken by the Chinese futures market toward high-standard opening-up' and that Shanghai rubber prices will unlock new risk management possibilities worldwide. He added that SHFE looks forward to more cross-border partnerships to better serve the real economy.
The debut in Osaka follows 2024 guidelines from China's State Council and the China Securities Regulatory Commission supporting collaborations between domestic and overseas exchanges. The first batch of contractsâexpiring in September 2025, January 2026, and May 2026âsaw a total trading volume of 322 lots and open interest of 152 lots on day one.
As global industries seek more efficient tools to navigate price swings, the listing of Shanghai natural rubber futures on OSE represents a pivotal step toward integrating Chinese price standards into global risk frameworks.
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Shanghai natural rubber futures listed on Japan's Osaka Exchange
cgtn.com
