SHANGHAI - The Shanghai Futures Exchange will raise trading margins and limits for all contracts from Nov 30 in a bid to curb speculative trading, it said on Thursday.
The move follows similar measures by China's other two big commodity exchanges, in Zhengzhou and Dalian.
China's government has promised to crack down on speculators, whom it blames for forcing up the price of many commodities and causing inflation to rise. It said on Thursday it had succeeded in bringing down prices of a range of futures. Raising trading margins could deter speculative traders as they would have to post a higher deposit with the bourse before any trade can be accepted, making each trade more cash-intensive.
"We will take further regulatory measures to combat irregular trading and curb unusual transactions to ensure the smooth operation of the market," the bourse said in a statement.
The exchange said it would lift the margin requirement of copper, aluminum, steel wire, gold and fuel oil to 10 percent of the total value of the contract, while contracts for reinforced bar steel and zinc contracts will be increased to 12 percent.
Rubber contract margins would be lifted to 13 percent, it said on its website, adding that it would also increase the daily price move limits for all the contracts to 6 percent.