BEIJING, July 24 (Xinhua) -- China's securities regulator said on Friday that it has approved the registration of hot-rolled coil and stainless steel options on the Shanghai Futures Exchange.

The China Securities Regulatory Commission said in a statement that it will urge the exchange to make all necessary preparations to ensure a smooth launch and stable operation of the new options.

Options give investors the right but not the obligation to buy or sell the underlying assets at a predetermined price. They are often used to hedge risks.