The Shanghai Futures Exchange (SHFE) has become a shareholder of Zhejiang Mercantile Exchange Co Ltd to assist with the establishment of an oil and gas trading market, according to an announcement at a signing ceremony held on Nov 10 in Zhoushan, East China's Zhejiang province.

A strategic cooperation agreement was signed among SHFE, the Local Financial Regulatory Bureau of Zhejiang, the management committee of the China (Zhejiang) Pilot Free Trade Zone (Zhejiang FTZ), and the Hangzhou-based Wuchan Zhongda Group (WZ Group) at the ceremony.

The agreement states that a portion of WZ Group's share of Zhejiang Mercantile Exhange Co Ltd will be assigned to Shanghai International Energy Exchange Co Ltd (INE), a wholly-owned subsidiary of SHFE.

INE, WZ Group, and Zhejiang Mercantile Exhange Co Ltd will target the high-quality integrated development of the Yangtze River Delta by establishing a YRD oil and gas trading market combining futures with cash markets.

Moreover, a memorandum of cooperation was also signed among the Department of Commerce of Zhejiang Province, the Local Financial Regulatory Bureau of Zhejiang, Hangzhou customs, the management committee of the Zhejiang FTZ, and WZ Group.

These parties will carry out broad cooperation in the delivery of futures, international commodity trading, financial technology, market training, talent exchange, capital, and business model innovation.

They will also discuss the establishment of a public platform for the registration and circulation of bonded goods in the Zhejiang FTZ and a commodity trading market system so that the futures market can serve the real economy more efficiently.

Representatives from SHFE, the Local Financial Regulatory Bureau of Zhejiang, the management committee of the Zhejiang FTZ, and WZ Group sign a strategic cooperation agreement on Nov 10 in Zhoushan. [Photo/WeChat account: china-zjftz]