Hard commodities were rallying in China on Monday after the head of the country’s securities regulator said it would support investment by wealth management companies in the sector.
Iron ore futures were up 2.1 per cent on the Dalian Commodity Exchange while coking coal futures gained 3.1 per cent. On the Zhengzhou Commodity Exchange thermal coal prices were up 2 per cent and Shanghai-listed copper futures were up 0.4 per cent.
Those gains come after Fang Xinghai, vice-chairman of the China Securities Regulatory Commission, said at the weekend that the commission would support investment in commodity assets by China’s wealth management companies.
Local media reported Mr Fang as saying that China still relied on state funding to buy key resources, and that the country “should maintain investment in commodities at a certain level to gain control over strategic resources” through private investors entering the commodity market.