China Market

China Market

Product Features
According to statistics, China is the 5th oil production and 2nd consumption country over the world nowadays. However, China had less influence in global oil pricing system as the proportion of consumption in Asia area (34%) had exceeded the North America and Europe region. The difference between the power of consumption and the status of Asia market makes this situation become worse. Hence, crude oil futures can reflect the basic demand-supply pricing connection to the whole Asia region providing an effective risk control tool.
The crude oil futures market is mature in western countries. WTI and Brent oil represented in North America and Europe respectively. Despite the fact that Oman oil is already on behalf of Asia, highly relying on Brent oil price. Therefore, INE oil would like to take initiative and develop the new pricing system directly.
  1. Denominated in RMB.Dollar as Margin

    Correspond to cross-border trade, RMB is used in denomination and settlement in Crude oil futures; Foreign investors can alternative using Dollar as margin as well.

  2. Trade in Net Value

    Quote exempted from tariff and VAT, distinguished from the current China futures market. This could enhance in connecting with international market and decrease the fluctuation in policy change simultaneously.

  3. Bonded Delivery

    After taking bonded spot trading quoted by net value into consideration, and bonded warehouse as a connection at home and abroad. Both spot investors and futures participants will benefit from bonded delivery.

  4. Underlying:Medium Crude Oil

    The overall production of crude oil around the world comes from the medium crude oil is 44%. It is also major type of crude oil in China and neighboring countries. Expected to be helpful in developing authorized pricng center after forming the standard benchmark.

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