THE Shanghai Futures Exchange will begin crude futures trading “as soon as possible” and seeks to open the domestic market to overseas participants, according to its chairman.

    The exchange has “basically” completed preparations for the new contract, Yang Maijun said at its annual conference in Shanghai yesterday. Trading is planned to start this year, Jiang Yang, vice chairman of the China Securities Regulatory Commission, said at the same event.

    China wants to create an Asian benchmark crude contract that could give the nation a bigger role in determining prices.

    The nation is the world’s largest oil consumer after the United States and meets more than half of its crude demand through imports, customs data show.

    The Shanghai exchange plans to amend its existing fuel oil futures contract, Yang said, without providing details. It also will study possible trading in “strategic” products including tin, nickel, alumina, stainless steel, cement, electricity, paper pulp and rare earth, he said.

    China will develop commodities options and expand the trial of futures contracts settled through the delivery of physical products from bonded warehouses, according to Jiang. (SD-Agencies)