Wine futures in the works

The recent correction in the stock markets have affected the fund and stock investment business. Industrial and Commercial Bank of China, CITIC Bank and many other financial institutions in China are developing new products to revive the market.

The recent correction in the stock markets have affected the fund and stock investment business.

They are collaborating with COFCO to develop wine futures as a new investment product domestically. They are investing in the dry red wine produced by COFCO in 2006.

The product will be sold units of barrels, which are approximately 225 liters each. The initial price will be between 100 to 200, 000 yuan. The maturity period will be 18 months.

Ordinary investors can decide to withdraw the wine, sell it, or continue to keep it after a year and a half. Wine futures are a mature investment product in overseas markets. In 2007, the wine futures index in London rose 39 percent, second only to the 47 percent increase in crude oil contracts.

Wine futures are a mature investment product in overseas markets.