The vice president of the China Securities Regulatory Commission -- Fang Xinghai -- says China will develop more futures products to meet demands of the real economy, including commodities futures.

Fang said at the 13th Shanghai Derivatives Market Forum that the fundamentals of China's futures market are solid and risk control has been improving. Over the course of 20 years, China has introduced a total of 46 futures products, covering major industrial sectors such as metallurgy, energy and chemicals. In the meanwhile, supervision has proven to be effective as China has successfully protected its capital markets from the global financial crisis.

"China's futures market is becoming more influential on the global level. The three futures exchanges located in Shanghai, Zhengzhou and Dalian are ranked high in terms of trade volume. Foreign investment accounted for more than 10 percent in some futures products. The price correlation between domestic and foreign markets is increasing," said Fang Xinghai vice president, CSRC.

"Before moving to China, foreign manufacturers used commodities prices provided by the US or London exchanges as reference. They have moved a lot of their factories to China. They are considering the prices provided by the Chinese market. That means China's influence in price formation is strengthening. Its weight is also climbing. China will gradually become the most important force in price formation," said Yao Guang, director energy & chemical, Shanghai Futures Exchange.

China is the largest consumer of most international commodities. The pricing mechanism of commodities has shifted to a futures-based model from a traditional producer and trader-dominated model. Fang says China will open its futures market to foreign capital, bringing in more investors.