Plastic futures debuted yesterday at the Dalian Commodity Exchange in the
coastal city in northeast China¡¯s Liaoning Province.
The financial products will help boost development of China¡¯s petrochemical
industry, said Li Yongwu, head of the China Petroleum and Chemical Industry
Association.
Li said China depends heavily on imported petrochemical products. The start
of trading in linear low-density polyethylene futures will allow for hedging
against risks for downstream enterprises in the petrochemical industry and will
give China influence in international plastic markets.
Shang Fulin, head of the China Securities Regulatory Commission, rang the
bell at the Dalian exchange to launch trading.
He said China¡¯s futures industry was growing rapidly and that product
innovation was accelerating.
The revised regulations on futures trading provide guarantees for the steady
development of the market, Shang said.
The country launched its first futures exchange in Zhengzhou, capital of
central China¡¯s Henan Province, in October 1990.
Seventeen futures products are traded on the Chinese mainland, including
cotton, sugar, wheat, soybean, maize, copper, aluminum, natural rubber and fuel
oil. Chinese futures markets in four exchanges¡ªtwo in Shanghai, one in
Zhengzhou and one in Dalian¡ªrecorded 14.5 trillion yuan (US$1.9 trillion) in
firsthalf turnover, 43.5-percent growth from the same period last year,
according to the China Futures Association.