China's securities regulator plans to move forward the legislative work of the futures law, and PTA will become the third commodity China will open to overseas investors following crude oil in March and iron ore in May, a senior official said on Saturday.
Purified terephthalic acid (PTA), a chemical compound, is a precursor to make clothing and plastic bottles. Over 90 percent of global PTA production is used in producing polyethylene terephthalate, or PET.
China will accelerate the opening-up of the country's futures market and internationalize all the mature futures contracts in an effort to boost its pricing clout, said Fang Xinghai, vice chairman of the China Securities Regulatory Commission (CSRC).
Over the past four years, China has launched 12 new futures/options contracts, accounting for 21 percent of the 57 contracts that are currently traded.
In March, China launched its long-awaited yuan-denominated crude futures contract.
Trading of white sugar options started last April in China, shortly after the launch of soybean meal options.
"China's economic development is in a strategically important period, and the prospect for the futures market is very promising," Fang said.
To encourage more foreign participation in the domestic market, China announced that foreign businesses would be allowed to own up to 51 percent of shares in futures companies, and the cap would be phased out over three years.