Chinese carbon trader makes HK$127,000 in one month
Carbon trader Shi Cheng capitalised on the still-growing nature of a developing market
The first Chinese individual investor to profit in the country’s budding carbon emission trading scene has netted 100,000 yuan (HK$127,000) one month after beginning trading.
After assessing the untapped potential of the Shenzhen Emissions Exchange, which covers over 600 industrial firms and opened only this year, Shi felt that “an opportunity to make money” existed, and with the assistance of family members, raised the 300,000 yuan (HK$382,000) needed to enter the market.
In July, Shi opened an online account and purchased 7,000 tonnes of carbon emission quotas after several weeks of “sitting in front of the computer every day monitoring prices.”
After observing market conditions, Shi decided on an average price of 65 yuan (HK$83) per quota, and eventually sold 5,200 tonnes, winning a profit of about 100,000 yuan.
Carbon trading in Shenzhen launched on June 18. Analysts expect markets to eventually open in Beijing, Shanghai, Chongqing and Tianjin, but trading in Shenzhen thus far has been much less than anticipated.