BEIJING, May 31 (Xinhua) -- China Securities Regulatory Commission (CSRC), the securities watchdog, gave nods to Shanghai International Energy Exchange (INE) to start crude oil options trading from June 21 and allowed the Dalian Commodity Exchange (DCE) to kick off palm oil options transaction from June 18, reported Xinhua-run Xinhua Finance citing news on CSRC's website on May 28.
The Chinese securities regulator also permitted introduction of foreign investors to participate in transaction of the crude oil and palm oil options.
Launching the crude oil options and allowing foreign investors to participate can further enrich the risk management tools kit of oil companies at home and abroad, said ThePaper.cn citing an official with INE.
Recent years, crude oil demand in China kept growing and China has become the second largest crude oil consumption country and the largest crude oil importer around the world.
In 2020, turnover of crude oil futures in China reached 41.59 million lots and the transaction value stood at 11.96 trillion yuan, showed public data.
The approved palm oil options are the first option product that introduces foreign investors in China.
DCE introduced foreign investors for palm oil futures from December 22 last year. Last year, daily turnover of palm oil futures averaged 1.30 million in China and palm oil futures turnover of DCE ranked the second in the global farm produce futures and options market. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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