(Yicai Global) Jan. 11 -- China, the world’s largest producer of non-genetically modified soybeans and its largest importer of GMO soybeans, has opened trading of a series of soybean futures and options to overseas traders for the first time.

Eight soybean-related futures and options contracts at the Dalian Commodity Exchange, including No. 1 Soybean, No. 2 soybean, soybean meal and soybean oil, became officially open to foreign traders on Dec. 26.

The step marked the first time that an exchange in China has introduced overseas traders to the full range of commodity products along the industry chain, Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said at a ceremony held on the same day.

The move shows China’s futures market has entered a new period of institutional opening-up in a more mature and confident manner, he added.

Widening access for foreign traders is expected to improve global price discovery, risk management, and resource allocation and help ensure China’s oil and oilseed security, Fang said, adding that overseas producers will be able to use China’s market information to make timely adjustments in output in order to maintain stability.

The market opening-up will help link global soybean production, processing, and trade systems more closely with the domestic market, and transmit market information in a timely manner through futures prices, according to Yan Shaoming, general manager of the Dalian Commodity Exchange.

In turn, that will enhance the engagement and resilience of the Chinese and international soybean supply and industry chains and better ensure global grain and oil security, Yan said.

Editor: Emmi Laine, Xiao Yi