China plans to open up its futures market to overseas investors through free trade zones(FTZ) gradually but till now no decision has been made on allowing the London Metal Exchange to set up a warehouse in the country.

On Tuesday China approved the formation of three FTZ , that will copy the model of the Shanghai FTZ established in 2013.

In 2008 the CSRC had banned on overseas commodity exchanges setting up warehouses in China.

The London Metal Exchange has tried to extend its world wide warehouse network to China over the past several years.

CSRC in December in December 2014, approved the crude oil futures. In January 2015 the regulator also issued draft rules to allow foreign investors to trade in some of the future commodities of the country.