Putuo district introduces its first 1-billion-yuan project this year. [Photo/WeChat account: china-zjftz]

Zhejiang Zheqi Industrial Ltd Co recently started operating in Putuo Finance Town, Zhoushan, East China's Zhejiang province, local media reported.

It is the city's first project this year with more than 1 billion yuan ($154.67 million) in paid-in capital, as well as the first bulk commodity financial risk management firm in Putuo district.

The newly-established company is the wholly owned risk management subsidiary of Zheshang Futures Co and is one of the risk management subsidiaries approved by the China Futures Association.

The company is mainly engaged in futures and spot business, over-the-counter derivatives, and the market maker business.

It will serve as a bridge between the spot market and the financial market and support the construction of an oil and gas industrial chain in the China (Zhejiang) Pilot Free Trade Zone.

In addition, the company plans to further expand its futures and spot business in oil products and gradually shift from domestic to international trade.

In 2021, its trade is expected to exceed 7 billion yuan and during the 14th Five-Year Plan period (2021-25), its total trade is projected to reach 50 billion yuan.

In recent years, the development of Putuo district has centered on the Zhejiang FTZ's development of an oil and gas industrial chain. Sinopec's global ship oil supply center, the Zhejiang natural gas trading center, and a provincial-level shipping insurance settlement center have already opened in the district.