The Shanghai Administration of Industry and Commerce, a regional government organisation that is responsible for market surveillance and law enforcement concerning industry and commerce in Shanghai, has sanctioned the latest trading venue to establish itself in China.
Under the new terms, China will issue futures contracts on a range of energy contracts including crude oil and natural gas.
The Shanghai International Energy Exchange will be situated in the Shanghai Pilot Free- Trade Zone. China holds significance in the global economy as a producer and user of several commodities, the launch of a dedicated energy venue will serve the needs of participants involved in the energy sector. According to official data China became the world’s largest importer of energy (October 2013).
The Rising Star of the DeFi Project, GIBXSwap, Passes CertiK Security AuditGo to article >>
The new exchange will be based in the Shanghai free-trade zone, the first free-trade zone in the mainland. The Shanghai International Energy Exchange is the largest exchange in the zone.
The Shanghai Administration of Industry and Commerce said in a notification that the new exchange was registered with a capital of 5 billion yuan (US$821 million).
Commodities have been gaining traction as traders appreciate volatility in oil, gold and silver. The unrest in the Middle East has left uncertainty in the region, one of the largest oil producing regions, and hence the uptake in trading activity.
The Shanghai International Energy Exchange will become the fifth futures exchange in China.