The Chinese market is set to launch LNG futures – what’s your opinion?
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At the 10th China International Petroleum Trade Conference held on November 8, 2021, Wang Fenghai, General Manager of the Shanghai Futures Exchange, said, \"In light of the growing need for risk management in the natural gas industry, the Shanghai Futures Exchange has been working continuously on the development of natural gas futures. In August this year, the liquefied natural gas futures project was approved by the China Securities Regulatory Commission, and efforts are now being accelerated to bring them to market.\" ” The era of LNG futures is approaching. What are people’s views on LNG futures?
In the future, financial futures tools such as hedging, forward purchasing, and warehouse receipt transactions can be utilized to mitigate spot price risks, thereby increasing sales volume and profits. In the later stage, an option + insurance model can also be used to provide downstream customers with tools for risk transfer and risk hedging.