China will launch options contracts for rubber, cotton, and corn on January 28, the country's top securities regulator said Friday.

The China Securities Regulatory Commission has given the nod to start rubber options on the Shanghai Futures Exchange, cotton options on the Zhengzhou Commodity Exchange and corn options on the Dalian Commodity Exchange as part of the government's drive to promote more complex agricultural trading tools.

Options give the holder the right to buy or sell a commodity at a particular strike price and allow greater hedging flexibility for Chinese processors and traders.

Spot commodity prices of rubber, cotton, and corn have seen frequent fluctuations in recent years, and the trading of related options will help firms manage risks in an individualized and sophisticated manner, said CSRC spokesperson Gao Li.

It will also help reduce insurance costs for farmers and better serve the vitalization of rural areas, Gao added.

China launched soymeal options on March 31, 2017, the country's first exchange-traded commodity options product.