Trading activities on the Shenhua auction platform softened from the previous session as bidders withdraw to the sidelines following the declines on the Dalian Commodity Exchange that eradicate the price gap between the two platforms.
The Chinese government is set to overhaul the financial system and possibly replace key position at the central bank, reported Bloomberg. Although economists do not expect any drastic change in monetary policies, jittery investors prefer to hold their position to monitor the development further.
Chinese bidders are withdrawing to the sideline to monitor the movement on the futures market in the next couple of days. Further decline futures contract would cause sharp fall in transactions on the Shenhua auction platform.