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Shanxi plans to launch China's 1st coal, coke futures bourse

Published: 04 Jun 2009 23:29:28 PST

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Jun. 5, 2009 (China Knowledge) - North China's Shanxi Province, whose coal output accounts for one third of the country's total, by 2012 intends to set up the nation's first coal and coke futures exchange in the province as part of its effort to stabilize the domestic market and gain a bigger voice in international pricing, according to Wang Hua, director at the Shanxi provincial capital market development office, the China Daily reported.

Wang said that the local government has finished a feasibility study into the establishment of the coal and coke bourse in the province and has submitted its application to the China Securities Regulatory Commission (CSRC), but it is still awaiting approval.

Wang added that they hope to team up with other commodity bourses to launch the futures products if it is difficult to establish the bourse in Shanxi.

However, some say a bourse located in Shanxi would be ideal, since it would be near the production areas and have access to a convenient transportation and logistics network.

According to an earlier report from China Knowledge, the local government plans to list its five major coal groups by 2015 to help them develop into strong multinational conglomerates. The five groups are Shanxi Datong Coal Group Co, Shanxi Coking Coal Group Co, parent of the country's largest publicly traded coke producer Shanxi Coking Co Ltd<600740>, Luan Group, Yangquan Coal Industry Group Co and Shanxi Jincheng Coal Group.

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