Shanghai to launch crude oil futures soon
Preparatory work has been done and exchange is geared up for energy contract's trading debut
The Shanghai Futures Exchange has completed preparatory work for the launch of crude oil products and would start simulated trading soon, chairman Yang Maijun said yesterday.
"The preparatory work for the crude oil future has been done," Yang told a forum. "We'll launch simulated trading in due time."
Since 2012, the CSRC has been striving to launch a crude oil futures market to help China, the world's second largest oil consumer, gain pricing power in the commodity.
China has to attract foreign investors, oil companies and consumers to trade the yuan-denominated futures to ensure a successful launch of the contract.
"We are highly hopeful of the successful launch of the contract and we are confident of it," said Li Runsheng, a vice-chairman of the China Petroleum and Chemical Industry Federation.
The debut of China's first oil futures market will not take place until it receives approvals from several other state authorities including the foreign exchange regulator.