BEIJING, March 26 (Xinhua) -- Shanghai crude oil futures market has embraced a generally stable operation with trading volume and open interest both growing steadily as of Tuesday, accumulating experience for China's futures market in the international operation and supervision, reported the Xinhua-run Shanghai Securities News citing Shanghai Futures Exchange (SHFE).
Shanghai crude oil futures was listed on the Shanghai International Energy Exchange Co., Ltd. (INE), a subsidiary of SHFE, on March 26, 2018, as the first futures variety on the Chinese mainland open to overseas investment.
According to SHFE, as of Monday, the trading volume of Shanghai crude oil futures totaled 36.7003 million lots (unilateral) with turnover reaching 17.12 trillion yuan (unilateral).
So far, customers from Britain, Australia, Switzerland, Singapore, Cyprus, Seychelles as well as China's Hong Kong and Taiwan have been attracted to open accounts in INE, according to SHFE, which expects more outbound investors in Shanghai crude oil futures.
The listing of Shanghai crude oil futures is not only a compensate for the vacancy that international crude oil prices are not yet priced in RMB, but also provides hedging instruments for investors during the international market break, said Wei Hongbin, Chief Executive Officer (CEO) at J.P. Morgan Chase Futures Ltd., a Sino-foreign joint venture.
It is reported that up to now, Shanghai crude oil futures has received great concern and positive comments from international organizations including International Energy Agency (IEA) and Organization of the Petroleum Exporting Countries (OPEC).
As for domestic market, the service function of Shanghai crude oil futures is gradually emerging.
In March and October last year, based on Shanghai crude oil futures prices, China International United Petroleum & Chemicals Co., Ltd. (UNIPEC) inked cooperation agreements with Shell and Shandong Chambroad Petrochemicals Co., Ltd. respectively.
In the future, Shanghai crude oil will become an intangible hand, guiding market participants to allocate resources, predicted a source from China National United Oil Corporation, an early participant of Shanghai crude oil futures trading.
Besides, in order to speed up the internationalization of crude oil futures, on the first anniversary of the listing of crude oil futures, SHFE issued the crude oil futures price index comprised of a price index and an excess return index, which, insiders believe, may become an important price reference benchmark for spot industry in the future. (Edited by Gu Shanshan)
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