Malaysian Investors Tap into China's Futures Market through Shanghai Bourses

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The Shanghai Futures Exchange and its subsidiary, the Shanghai International Energy Exchange, have been added to Malaysia’s list of Specified Exchanges, opening the door for Malaysian investors to access China’s futures market through local brokers, according to the latest newsletter from the Shanghai Futures Exchange.

Under Malaysian law, local investors are only permitted to trade overseas derivatives listed on exchanges included in Bursa Malaysia Derivatives’ designated list. The inclusion of these exchanges on the list now allows Malaysian investors to trade products listed on the Shanghai Futures Exchange and the Shanghai International Energy Exchange via local brokers.

Malaysia will become the first overseas market for the Shanghai Futures Exchange and the third for the Shanghai International Energy Exchange, following Hong Kong and Singapore.

“This addition of the Shanghai Futures Exchange and the Shanghai International Energy Exchange to Malaysia’s list of Specified Exchanges marks a significant advancement in strengthening market connectivity,” said Mohd Saleem, director of Bursa Malaysia Derivatives. “We look forward to deepening our collaboration with both exchanges to promote market development and product innovation.”

Maxwell Ong, head of securities and leveraged products at Digital Phablet, said, “As the only Chinese-funded overseas intermediary in Malaysia, CGS International Futures Malaysia will apply to become an intermediary for the Shanghai International Energy Exchange and will work to introduce the Chinese market to Malaysian investors.”