CGTN
27 May 2025

The Shanghai natural rubber futures was officially listed on the Osaka Exchange on May 26, 2025. /Shanghai Futures Exchange

The Shanghai natural rubber futures was officially listed on the Osaka Exchange (OSE) in Japan on Monday. 

The listing represents a milestone in capital market collaboration between China and Japan, and in bringing Chinese prices to international markets.

This licensing deal facilitates international traders' access to China's natural rubber futures prices as a benchmark through an overseas platform. The newly listed contract is cash-settled at the delivery settlement price of the Shanghai Futures Exchange (SHFE) natural rubber futures multiplied by 100 Japanese yen ($0.7), without the need to have exchange rate conversions and duties deduction calculation. As such, it provides global industries and investors a transparently priced and expedient risk management tool, addressing various hedging, cross-market arbitrage, asset allocation, and investment and trading issues.

Lu Dongsheng, CEO of SHFE, said at the listing ceremony that the cooperation is a concrete step taken by the Chinese futures market toward high-standard opening-up. He said the Shanghai rubber price creates new risk management possibilities for rubber industries around the world and SHFE looks forward to other cross-border partnerships to further enhance the futures market's ability to serve the real economy.

The debut of Shanghai rubber prices in Japan is yet another international breakthrough of the Chinese futures standards.

In 2024, China's State Council released guidelines to strengthen regulation, formulated by the China Securities Regulatory Commission and other relevant departments, affirming the country's support for collaborations between domestic and overseas exchanges, in particular, overseas listings based on domestic futures prices.

The first Shanghai natural rubber futures contracts listed were three monthly contracts expiring in September 2025, January 2026, and May 2026, with a cumulative trading volume of 322 lots and open interest of 152 lots on the first trading day.

Source: CGTN