China exchange to open lithium futures to overseas traders from July 3

The opening up of the lithium contract, which was only launched domestically in July 2023, would follow the internationalisation of China's main futures for another battery metal, nickel, on the Shanghai Futures Exchange in April.

China's securities regulator had earmarked both contracts for internationalisation at the start of this year, as Beijing pushes for greater adoption of its currency, the yuan, and seeks to exert more influence over commodity pricing.

Overseas traders may use U.S. dollar funds as margin to trade the yuan-denominated lithium futures, subject to a 5% haircut, the exchange said, adding that monthly contracts for delivery from July onward, and options based on them, would be opened up.