China Securities Regulatory Commission announced the launch of the crude oil futures in February.
Preparations are almost complete, and there have been several system tests ahead of the launch.
Analysts say Shanghai crude will be able to compete for the crude price benchmark in the Asia-Pacific region, hopefully becoming part of the 24-hour global trading system, together with Brent and WTI futures.
The Asia-Pacific region has surpassed America and Europe in crude consumption, but a benchmark with high recognition is still missing.
China is the world's second largest oil consumer after the United States. Demand is likely to soar in the future as the country is thirsty for energy to fuel its economic growth.
Gu said he expects sufficient demand for the crude futures contracts from both industrial and financial clients as they needed a tool to manage risk, and hedge against inflation.
Individual investors can also benefit from the launch as their interests are better protected in exchanges rather than through over-the-counter trading, according to Gu.
The yuan-based futures are also expected to help China's effort to promote the yuan as a global currency.
However, Gu said that there were still uncertainties over liquidity as well as concerns over contract settlements.
While foreign investors are allowed in the petro-yuan trade, Gu said there have been relatively few accounts opened by overseas clients, indicating concerns over market liquidity and regulatory uncertainties.
【国内英语资讯:Economic Watch: China gears up for launch of crude oil futures】相关文章:
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