China is working to establish weather futures as
part of efforts to offer hedge tools for farmers and insurance companies to
minimize weather-related losses and risks.
The Dalian Commodity Exchange, one of China's largest futures exchanges,
recently submitted the contracts of a special temperature index it had made with
the National Climatic Data Center to the China Securities Regulatory Commission
for approval.
The Dalian Commodity Exchange formed a partnership last year with the Chicago
Mercantile Exchange of the United States, which already has weather futures
transactions.