International transaction center to assist in development of BRI members

A new international energy transaction center was unveiled on Monday, a key move to secure energy supply for the Guangdong-Hong Kong-Macao Greater Bay Area and the whole of China.

Registered in Hong Kong, the GH&M Greater Bay Area International Energy Transaction Center was founded by Zhuhai Dayang International Exchange Group and Dayang (Shenzhen) International Exchange Group.

The center said its main businesses cover organizing the online trading, settlement and delivery of crude oil, liquefied natural gas, liquefied petroleum gas, methane, ethane, electricity, carbon trade, new energy products, chemical products and other energy derivatives. And it will also develop business management guidelines, publish market information and provide technical, site and facility services.

Gong Jialong, chairman of the GH&M Greater Bay Area International Energy Transaction Center, said the establishment of the center is a key measure that will serve the sustainable development of energy industry of markets involved in the Belt and Road Initiative, and it will be an important carrier for China to participate in the global energy pricing system.

"We aim to build an open, diversified, fair and efficient international energy exchange platform for large energy companies and the rest 70 percent small-and medium-sized energy firms."

Gong made the remarks during the 2019 China International Energy Conference and the launch ceremony of the new center on Monday in Beijing.

The conference was guided by the National Development and Reform Commission and sponsored by the China Petroleum Circulation Association, the China Overseas Development Association and the Western Returned Scholars Association-Entrepreneur Alliance.

According to Gong, the center is set to empower energy enterprises and financial institutions through the support of the internet, big data, cloud computing, blockchain and other new technology.

Experts noted the new center will be a key international exchange platform after the London Stock Exchange and the New York Stock Exchange, which will help integrate energy sectors, optimize the industrial chain and set up a multi-level and market oriented modern exchange platform system.

Sun Xiansheng, secretary-general of the International Energy Forum, said the new center made up for the lack of an energy trading center in southern China.

"The new center will significantly help promote energy exchanges, further promote energy security and boost economic development," Sun added. "After years of development, China is now transitioning from the phase of rapid development to a new stage of high-quality development. So China needs new models, such as establishing the new international energy transaction center, to inject new impetus into the economy. In addition, the new center will also help boost the development of the Belt and Road Initiative."

Eric Fang, president of The National Center for Sustainable Development, a US-based nonprofit organization, agreed, saying it is part of China's ongoing efforts to open up to the world.

"The new center will provide an international and a systematic platform to serve the energy companies both at home and abroad," Fang noted. "Specifically, the platform will help empower small-and medium-sized energy companies. With the transparent and fair platform, it will be easier for global companies to enter the Chinese market and Chinese firms to go global."