China’s Shanghai pushes ahead with trading hub plans with approval of oil, gas platform

Shanghai is pushing ahead with developing itself further as a commodity trading hub this year, with its recent approval to set up a physical energy trading platform. The municipal government has approved the establishment of a platform for the physical spot trade of oil, LPG, natural gas, unconventional gas and other energy products, according to a December 26 statement posted early this month on its website. The newly approved platform is one of eight commodity trading platforms that municipal government aims to develop in the Shanghai Free Trade Zone this year as part of an ongoing initiative to develop into an international trading hub. The other targeted commodities include iron ore, cotton, liquid petrochemicals and nonferrous metals, according to the Shanghai government website. Unlike many of the other existing spot trading platforms in China, the newly approved platform is the first to have central government backing, as it is formed under a strategic alliance between Xinhua News Agency and the National Development and Reform Commission, China‘s powerful economic planning agency. The two signed a strategic cooperation agreement in October 2013 to set up a national price research institute for the development of a price discovery platform which could help in … continue reading

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