A speech given by the vice chairman of China's securities regulator has shed new light on the nation's plans for the commodities sector.

China’s securities watchdog has said it will encourage wealth management houses to invest in commodity futures as it looks to spur its domestic derivatives industry and increase the amount of commodities held as assets.

The regulator will slacken restrictions limiting how banks, insuarance firms and pension funds invest in commodity futures, Fang Xinghai, The China Securities Regulatory Commission’s vice chairman, said in a speech published on the CSRC’s website.

He did not provide further details on the proposal, however.

But any major push by wealth managers into the futures sector could spike volatility in prices of raw materials.

“Commodities are indispensable resources for the industrial economy,” Fang said.