China's securities regulator on Friday approved the trading of silver futures contracts on the Shanghai Futures Exchange (SHFE).

China Securities Regulatory Commission said in an online statement that the SHFE should make full preparations for the trading by applying high standards to ensure a steady beginning.

"The exchange should take precautions against and properly resolve potential market risks in order to ensure the smooth launch and steady trading of silver futures contracts," according to the commission.

The SHFE on Friday also released a statement concerning the standard contracts and the trading rules for silver futures, saying the trading will begin on May 10.