China approves registration of platinum and palladium futures

China has approved registration of platinum and palladium futures and options, moving a step closer to the launch of the derivatives trading of the metals used by automakers and other industrial sectors.

The China Securities Regulatory Commission said on Friday that it would supervise the Guangzhou Futures Exchange to ensure a smooth launch of platinum and palladium futures and options. The regulator did not disclose a date for the launch.

The Guangzhou bourse, which was established in 2021 and mainly focuses on products related to green energy, announced the plans in July last year, seeking to provide a domestic price-hedging mechanism for the metals.

The exchange had been communicating with futures companies, producers and traders on the design of the proposed contracts, industry insiders said.

Prices of platinum and palladium have spiked this year, driven by tight supply.

Analysts have raised price forecasts for platinum and palladium in 2026, citing tight mine supply, tariff uncertainty and rotation from investment demand for gold.

(By Amy Lv, Xiuhao Chen and Ryan Woo; Editing by David Goodman)