On March 26, 2018 (February 10, 2018 in the lunar calendar), the petroleum RMB officially set sail. China Securities Regulatory Commission announced on February 9 that after careful preparations, crude oil futures will be listed for trading on the Shanghai Futures Exchange on March 26, 2018. Currently, global crude oil futures trading is mainly concentrated in London and New York. The world's important crude oil futures contracts include: New York Mercantile Exchange (NYMEX) light sweet crude oil, namely "West Texas Intermediate Oil"(WTI) futures contract, sour crude oil futures contract, London International Petroleum Exchange (IPE) Brent crude oil futures contract, Singapore Exchange (SGX) Dubai sour crude oil futures contract. China is the world's largest importer of crude oil, but it needs to use US dollars to trade in international crude oil trade. The launch of crude oil futures will help China gain greater influence in the international crude oil market. At the same time, the launch of crude oil futures denominated in RMB is also a major step in the internationalization of RMB. China has been planning to launch crude oil futures since 2012, but the stock market crash two years ago affected the process. After successfully completing five production system drills across the market, everything is ready for the official launch of crude oil futures. Foreign media commented on the petroleum RMB and said that China will achieve a win-win situation in this move: the RMB can be fully exchanged for gold on the Shanghai and Hong Kong exchanges. The interchangeability of oil, RMB and gold has actually achieved a win-win result. There is no problem if energy suppliers choose physical gold for payment. The most important point is that doing so achieves the goal of de-dollarization. "Petroleum RMB" is here! China crude oil futures set sail on March 26. Crude oil futures will be listed and traded on the Shanghai Energy Exchange, a subsidiary of the Shanghai Futures Exchange, on March 26, 2018. Because the futures were listed and traded at the Shanghai International Energy Trading Center (INE), they were named INE crude oil futures contract. As my country's first international futures variety, crude oil futures will introduce foreign investors to participate and explore the market operation and supervision experience of the internationalization of the futures market. It can give China the pricing power of crude oil in East Asia and reduce the constraints of oil prices on China's economy. According to the disclosure in the previous issue, after careful preparation, all work on the listing of crude oil futures has been basically completed. "At present, in the previous period, Energy has approved 149 futures companies to apply for membership. The approval has been given to 12 banks to engage in margin depository business for domestic customers, and 8 banks to engage in margin depository business for overseas customers. They have successively conducted 5 full-market production system drills." The Shanghai International Energy Trading Center issued an announcement stating that according to relevant regulations such as the "Shanghai International Energy Trading Center Crude Oil Futures Standard Contract" and the "Shanghai International Energy Trading Center Delivery Rules", the regulations on deliverable oil types, quality and premium prices for crude oil futures are as follows: China crude oil futures trading subject is medium sour crude oil. The main characteristics of China's crude oil futures are: international platforms: internationalization of transactions, internationalization of delivery and internationalization of settlement links to facilitate the free, efficient and convenient participation of domestic and foreign traders. Relying on the international crude oil spot market, domestic and foreign traders are introduced. Participation, including multinational oil companies, crude oil traders, investment banks, etc., promotes the formation of benchmark prices that reflect the supply and demand relationship of crude oil markets in China and the Asia-Pacific time zone. Net price transaction: It is the net price excluding tariffs and value-added tax. It is different from the current domestic futures trading prices that are all tax-inclusive prices. It is convenient to directly compare with tax-free prices in the international market, and at the same time avoid changes in tax policies on the impact of transaction prices. Bonded delivery: It is to rely on bonded oil depots to carry out physical delivery. The main consideration is that the pricing of bonded spot trade is a net price excluding tax. Bonded trade has few restrictions on participating entities. Bonded oil depots can also serve as a link to connect domestic and foreign crude oil markets. It is conducive to the participation of international crude oil spot and futures traders in trading and delivery. RMB pricing: It means using RMB for transactions and delivery, and accepting foreign exchange funds such as US dollars as margin. Compared with major international crude oil futures contracts, INE crude oil is different in terms of delivery methods, daily settlement prices, margin requirements and trading hours: the crude oil futures standard contract of Shanghai Energy Trading Center has a trading unit of 1000 barrels/lot, and the minimum price change is 0.1 yuan/barrel, and the minimum price limit is 4%. The trading hours are from 9:00 to 11:30 a.m. and from 1:30 to 3:00 p.m. Conditions for participating in crude oil futures trading: 1. Available funds: RMB 500,000 or equivalent foreign currency for individual investors, RMB 1 million or equivalent foreign currency for institutional investors. 2. Knowledge test: If you open an account, you must participate in the futures trading examination arranged by the account opening institution and pass it. 3. Trading experience: To open an account, you must have 10 trading days and participate in more than 10 domestic futures simulation trading records, or have more than 10 overseas futures trading records in the past three years. There are four modes for overseas customers to participate in crude oil trading: 1. Members of domestic futures companies directly represent overseas customers to participate in crude oil futures; 2. After accepting the entrustment of overseas customers, overseas intermediaries entrust members of domestic futures companies or overseas special brokerage participants (one account for one account) to participate in crude oil futures;3. Overseas special brokerage participants accept the entrustment of overseas customers to participate in crude oil futures (direct entry transactions, settlement and delivery are entrusted to members of futures companies);4. As an overseas special non-brokerage participant of the Energy Center, participate in crude oil futures. The 21st Century Business Report pointed out that from the perspective of the positioning of major crude oil futures, Brent and WTI are benchmark oils in the Atlantic Basin, while Shanghai crude oil futures are positioned as benchmark oils in the Asia-Pacific region. The three complement each other and are likely to occur due to "East-West" arbitrage, resulting in an increase in the positions and trading volume of the above two benchmark oils. On the other hand, the launch of Shanghai crude oil futures will also help producers, traders and speculative institutions better grasp the crude oil supply and demand pattern in the Asia-Pacific region, compare its price difference with Brent and WTI, and launch the next trade and logistics of crude oil. Trend, thereby increasing the participation of all parties in the market. China's launch of crude oil futures is of great significance. China's oil demand accounts for about 13% of the world, and its dependence on imports continues to increase. Data from the National Bureau of Statistics show that apparent consumption of oil products in China increased by 5.6% year-on-year to 578 million tons in 2016, while the year-on-year growth in consumption from January to October 2017 reached 6%. In 2016, crude oil imports increased by 13.6% year-on-year to 381 million tons. Imports from January to November 2017 exceeded that of last year, reaching 386 million tons. Import dependence has increased from 65% in 2016 to 75%. The Energy Information Administration (EIA) of the U.S. Department of Energy stated on January 31 that China's average daily crude oil imports for the whole of 2017 were 8.4 million barrels per day, surpassing the United States '7.9 million barrels per day for the first time, becoming the world's largest crude oil importer. (Photo source: EIA official website) In addition, China is the only country in the world to have all industrial categories in the United Nations Industrial Classification and the world's largest trading country. The launch of "Petroleum RMB" will help form a complete closed loop. China Merchants Futures Research News pointed out that China's oil production accounts for 4?% of the world's total. Affected by low oil prices since 2014, China oil companies significantly reduced upstream capital expenditures from 2015 to 2016, resulting in the largest decline in production in history in 2016, reaching 7%. The latest report of the Bureau of Land and Resources did not mention plans for new oil and gas exploration, so China's output is expected to continue to decline in 2018. Demand for crude oil is growing day by day, dependence on foreign countries continues to increase, and domestic crude oil production is declining. How to change this passive situation? To increase the influence of China prices on world oil prices, it has become inevitable to launch the "China version" of crude oil futures. Yin Qiang, deputy secretary-general of China Petroleum Circulation Association, said that the launch of crude oil futures is an important link in establishing a normal order in the country and an important symbol of our move towards comprehensive opening up. The current international oil price is not too high and its impact on the domestic market is not too great. Overall, now is a good time to launch crude oil futures. (Photo source: Wind Financial Terminal) Yin Qiang said that the launch of domestic crude oil futures can provide futures prices based on domestic oil supply and demand, providing companies with more suitable risk avoidance tools and means. Avoiding the risk of market price fluctuations through the hedging function of the futures market can lock in corporate costs and profits, reduce corporate procurement or sales costs, and reduce the blindness of domestic corporate operations. At the same time, use the price signals of the domestic futures market to gain insight into market changes and better optimize the production and operation of enterprises. Developing crude oil futures can ensure the country's energy security and at the same time promote the smooth operation of the international market. By reflecting our actual needs and real prices through the crude oil futures market, we can effectively guarantee oil supply. In addition, it has a great stabilizing effect on the international market. China Merchants Securities Research reported that the "petroleum RMB" generated by RMB crude oil futures will supplement China's economy and help the internationalization of the RMB; The opportunity to influence the pricing power of international oil prices will help eliminate the price disadvantage of "Asian premium"; it can reduce companies 'spot oil inventories and capital occupation, and help complete strategic oil reserves. RMB crude oil futures will provide hedging channels for refineries to reduce exchange loss risks and transaction costs; domestic refineries, in addition to PetroChina Sinopec, Shanghai Petrochemical and Huajin, Hengyi Petrochemical, which is currently building private large refining and chemical projects, Tongkun Shares, Rongsheng Petrochemical and Hengli Shares will all benefit significantly. ZeroHedge previously commented on the "Petroleum RMB" saying that China will achieve a win-win situation in this move: the RMB can be fully exchanged for gold on the Shanghai and Hong Kong exchanges. The interchangeability of oil, RMB and gold has actually achieved a win-win result. The most important point is that doing so achieves the goal of de-dollarization. As early as more than 20 years ago, the China government had plans to carry out oil futures trading. In 1993, China launched its first domestic crude oil futures contract. Since China was in the reform stage of the energy industry at that time, the contract only lasted for one year. But in 2013, the China government signaled to the outside world for the first time that the petroleum yuan was about to be born. By doing so, the China government became the first country to resist the petrodollar system, preparing for the birth of the petroyuan. More importantly, the status of the US dollar as the main currency in circulation on the international stage has also been challenged. Now, this idea is about to become a reality. In the short term, it will not challenge the status of petrodollars."Petrodollars" were born in the oil crisis and rose rapidly. They reached prosperity in the 1980s. Petrodollars directly invested through long-term securities and other methods accounted for more than 60% of the total amount returned. However, the low and medium oil prices in recent years have caused the current account balances of oil-producing countries to turn from positive to negative in 15 years. In the conventional oil era, the national oil company system of OPEC countries can effectively control crude oil supply through internal consultation mechanisms; in the era of unconventional oil and gas, the participants are hundreds of independent oil companies, which cannot be unified and coordinated; In a sense, the traditional supply coordination mechanism has basically failed. The irreversible development trend of shale oil and gas has led to the transformation of the international oil market from sell-led to buyer-led; in addition, the weakening of the United States 'own external energy demand has led to challenges for the circulation mechanism of the "petrodollar". Bai Ming, deputy director of the Institute of International Markets at the Research Institute of the Ministry of Commerce, said in an interview with the media last month that China's oil consumption surpassed that of the United States on a monthly basis in 2012, and it is likely to surpass the United States on an annual basis to become the world's largest energy importer. The United States may become an energy exporter in the future. Therefore, China will have greater demand for the international market in the future. Therefore, China's demand for value preservation and price locking of imported crude oil appears to be very strong. Bai Ming said that crude oil futures, as a tool for hedging and hedging, are also a reflection of our active struggle for pricing power. It will not challenge the status of petrodollars in the short term. When long-term development reaches a certain stage, certain competition will arise, which may not be a challenge."It will attract some customers and suppliers to participate, but this group of customers may not abandon the markets of European and American countries." More business related to China should be in China. But this is beneficial to stabilizing the trade environment between China and oil-producing countries. How will the petroleum-RMB system be gradually established? Cheng Shi, chief economist and managing director of ICBC International, recently issued an article analyzing the prospects of petroleum-RMB, pointing out that at present, the high tide of diversification, the "shifting speed" of global recovery, and the lingering low oil prices have formed a synergy. The RMB provides an important historical opportunity to participate in future global oil settlement and pricing. However, the network externalities of international currencies determine that the establishment of the petro-RMB system will not be achieved overnight. Based on the share of global exports and the proportion of China's imports, the world's top 15 crude oil exporters are divided into different categories: Saudi Arabia, Russia, and Iraq rank among the top three crude oil exporters in the world, and China's imports also exceed 1/3 of the total imports. It is the most ideal target for breaking the outflow of oil and RMB; Angola, Iran, and Venezuela are the second, fifth and sixth largest sources of China's crude oil imports. It is more feasible for China to drive RMB settlement and pricing through imports; The top 15 crude oil exporters, the United Arab Emirates, Kuwait, Nigeria, and Qatar are expected to become potential areas for further expansion of the petroleum RMB through the leadership of OPEC. However, considering that these countries have relatively limited dependence on China's crude oil imports, China needs to rely on other multilateral and bilateral economic and trade cooperation measures to gain its acceptance of the RMB in oil trade. Considering that the economic structure of most oil-exporting countries is relatively single and China's financial market is not yet fully open, the return flow centered on importing China goods (services) and optimizing the structure of foreign exchange reserves will be the main carrier of endogenous demand for petroleum RMB. At present, Russia has begun to gradually accept the RMB as the settlement currency for oil trade between China and Russia, and economic and trade cooperation between Saudi Arabia and China is also continuously strengthened. With Saudi Arabia and Russia as the fulcrum, the petroleum RMB will have a spillover effect, driving more overseas companies to collect RMB for exports, and gradually increasing their willingness to hold and reserve RMB across borders. List of crude oil futures concept stocks in mid-term China: It is the only listing platform under the mid-term group, holding 19.76% equity in international futures. Longyu Fuel: In January 2015, the shareholders 'meeting approved the company to change the use of raised funds and jointly establish domestic and overseas companies with GlobalFarInc and Fu Yueqin to operate bulk commodity trading. Guanghui Energy: Its holding subsidiary Guanghui Petroleum has obtained the non-state trade import qualification of crude oil issued by the Ministry of Commerce. In 2014, the allowable import volume of crude oil non-state trade was 200,000 tons. Guanghui Petroleum can sell crude oil to refining companies that comply with industrial policies based on market conditions. The company must regularly report the implementation of crude oil imports to the Ministry of Commerce (Foreign Trade Department). Xiamen International Trade: Xiamen International Trade Group Co., Ltd. is a large-scale comprehensive enterprise founded in 1980 and listed in 1996. It has formed three core main businesses: trade, real estate, ports, and logistics. It is one of the largest 500 group companies in China and one of the top 100 listed companies in China. The company is determined to forge ahead and innovate continuously, and its main business is deepening and expanding in relevant areas of the industrial chain. Zhejiang Dongfang: Zhejiang Dongfang Group Co., Ltd. was established in 1988. In 1997, the company was successfully listed on the Shanghai Stock Exchange. Over the past ten years, with the continuous deepening of corporate reforms and the effective implementation of business strategies, the company has successfully transformed reform opportunities into positive benefits and achieved leapfrog development. Zhongda Products: It holds 95% equity in its Zhejiang Zhongda Futures, and its net profit contribution ratio is approximately 2%. Lay out financial controls to increase profits. In 2016, the company's financial business brought operating income of 370 million yuan (YoY-9%) and gross profit margin reached 73%. In 2016, the company participated in the establishment of Huashang Yunxinbao, initiated the establishment of Hangzhou Wunuo Fund, and also participated in holding dozens of financial and quasi-financial licenses. It is expected that the financial sector with higher gross profit margins will become one of the company's profit growth points in the future. A picture of understanding the "China version" of crude oil futures Photo source: 21st Century Economic ReportOn March 26, 2018 (February 10, 2018 in the lunar calendar), the petroleum RMB officially set sail. China Securities Regulatory Commission announced on February 9 that after careful preparations, crude oil futures will be listed for trading on the Shanghai Futures Exchange on March 26, 2018. Currently, global crude oil futures trading is mainly concentrated in London and New York. The world's important crude oil futures contracts include: New York Mercantile Exchange (NYMEX) light sweet crude oil, namely "West Texas Intermediate Oil"(WTI) futures contract, sour crude oil futures contract, London International Petroleum Exchange (IPE) Brent crude oil futures contract, Singapore Exchange (SGX) Dubai sour crude oil futures contract. China is the world's largest importer of crude oil, but it needs to use US dollars to trade in international crude oil trade. The launch of crude oil futures will help China gain greater influence in the international crude oil market. At the same time, the launch of crude oil futures denominated in RMB is also a major step in the internationalization of RMB. China has been planning to launch crude oil futures since 2012, but the stock market crash two years ago affected the process. After successfully completing five production system drills across the market, everything is ready for the official launch of crude oil futures. Foreign media commented on the petroleum RMB and said that China will achieve a win-win situation in this move: the RMB can be fully exchanged for gold on the Shanghai and Hong Kong exchanges. The interchangeability of oil, RMB and gold has actually achieved a win-win result. There is no problem if energy suppliers choose physical gold for payment. The most important point is that doing so achieves the goal of de-dollarization. "Petroleum RMB" is here! China crude oil futures set sail on March 26. Crude oil futures will be listed and traded on the Shanghai Energy Exchange, a subsidiary of the Shanghai Futures Exchange, on March 26, 2018. Because the futures were listed and traded at the Shanghai International Energy Trading Center (INE), they were named INE crude oil futures contract. As my country's first international futures variety, crude oil futures will introduce foreign investors to participate and explore the market operation and supervision experience of the internationalization of the futures market. It can give China the pricing power of crude oil in East Asia and reduce the constraints of oil prices on China's economy. According to the disclosure in the previous issue, after careful preparation, all work on the listing of crude oil futures has been basically completed. "At present, in the previous period, Energy has approved 149 futures companies to apply for membership. The approval has been given to 12 banks to engage in margin depository business for domestic customers, and 8 banks to engage in margin depository business for overseas customers. They have successively conducted 5 full-market production system drills." The Shanghai International Energy Trading Center issued an announcement stating that according to relevant regulations such as the "Shanghai International Energy Trading Center Crude Oil Futures Standard Contract" and the "Shanghai International Energy Trading Center Delivery Rules", the regulations on deliverable oil types, quality and premium prices for crude oil futures are as follows: China crude oil futures trading subject is medium sour crude oil. The main characteristics of China's crude oil futures are: international platforms: internationalization of transactions, internationalization of delivery and internationalization of settlement links to facilitate the free, efficient and convenient participation of domestic and foreign traders. Relying on the international crude oil spot market, domestic and foreign traders are introduced. Participation, including multinational oil companies, crude oil traders, investment banks, etc., promotes the formation of benchmark prices that reflect the supply and demand relationship of crude oil markets in China and the Asia-Pacific time zone. Net price transaction: It is the net price excluding tariffs and value-added tax. It is different from the current domestic futures trading prices that are all tax-inclusive prices. It is convenient to directly compare with tax-free prices in the international market, and at the same time avoid changes in tax policies on the impact of transaction prices. Bonded delivery: It is to rely on bonded oil depots to carry out physical delivery. The main consideration is that the pricing of bonded spot trade is a net price excluding tax. Bonded trade has few restrictions on participating entities. Bonded oil depots can also serve as a link to connect domestic and foreign crude oil markets. It is conducive to the participation of international crude oil spot and futures traders in trading and delivery. RMB pricing: It means using RMB for transactions and delivery, and accepting foreign exchange funds such as US dollars as margin. Compared with major international crude oil futures contracts, INE crude oil is different in terms of delivery methods, daily settlement prices, margin requirements and trading hours: the crude oil futures standard contract of Shanghai Energy Trading Center has a trading unit of 1000 barrels/lot, and the minimum price change is 0.1 yuan/barrel, and the minimum price limit is 4%. The trading hours are from 9:00 to 11:30 a.m. and from 1:30 to 3:00 p.m. Conditions for participating in crude oil futures trading: 1. Available funds: RMB 500,000 or equivalent foreign currency for individual investors, RMB 1 million or equivalent foreign currency for institutional investors. 2. Knowledge test: If you open an account, you must participate in the futures trading examination arranged by the account opening institution and pass it. 3. Trading experience: To open an account, you must have 10 trading days and participate in more than 10 domestic futures simulation trading records, or have more than 10 overseas futures trading records in the past three years. There are four modes for overseas customers to participate in crude oil trading: 1. Members of domestic futures companies directly represent overseas customers to participate in crude oil futures; 2. After accepting the entrustment of overseas customers, overseas intermediaries entrust members of domestic futures companies or overseas special brokerage participants (one account for one account) to participate in crude oil futures;3. Overseas special brokerage participants accept the entrustment of overseas customers to participate in crude oil futures (direct entry transactions, settlement and delivery are entrusted to members of futures companies);4. As an overseas special non-brokerage participant of the Energy Center, participate in crude oil futures. The 21st Century Business Report pointed out that from the perspective of the positioning of major crude oil futures, Brent and WTI are benchmark oils in the Atlantic Basin, while Shanghai crude oil futures are positioned as benchmark oils in the Asia-Pacific region. The three complement each other and are likely to occur due to "East-West" arbitrage, resulting in an increase in the positions and trading volume of the above two benchmark oils. On the other hand, the launch of Shanghai crude oil futures will also help producers, traders and speculative institutions better grasp the crude oil supply and demand pattern in the Asia-Pacific region, compare its price difference with Brent and WTI, and launch the next trade and logistics of crude oil. Trend, thereby increasing the participation of all parties in the market. China's launch of crude oil futures is of great significance. China's oil demand accounts for about 13% of the world, and its dependence on imports continues to increase. Data from the National Bureau of Statistics show that apparent consumption of oil products in China increased by 5.6% year-on-year to 578 million tons in 2016, while the year-on-year growth in consumption from January to October 2017 reached 6%. In 2016, crude oil imports increased by 13.6% year-on-year to 381 million tons. Imports from January to November 2017 exceeded that of last year, reaching 386 million tons. Import dependence has increased from 65% in 2016 to 75%. The Energy Information Administration (EIA) of the U.S. Department of Energy stated on January 31 that China's average daily crude oil imports for the whole of 2017 were 8.4 million barrels per day, surpassing the United States '7.9 million barrels per day for the first time, becoming the world's largest crude oil importer. (Photo source: EIA official website) In addition, China is the only country in the world to have all industrial categories in the United Nations Industrial Classification and the world's largest trading country. The launch of "Petroleum RMB" will help form a complete closed loop. China Merchants Futures Research News pointed out that China's oil production accounts for 4?% of the world's total. Affected by low oil prices since 2014, China oil companies significantly reduced upstream capital expenditures from 2015 to 2016, resulting in the largest decline in production in history in 2016, reaching 7%. The latest report of the Bureau of Land and Resources did not mention plans for new oil and gas exploration, so China's output is expected to continue to decline in 2018. Demand for crude oil is growing day by day, dependence on foreign countries continues to increase, and domestic crude oil production is declining. How to change this passive situation? To increase the influence of China prices on world oil prices, it has become inevitable to launch the "China version" of crude oil futures. Yin Qiang, deputy secretary-general of China Petroleum Circulation Association, said that the launch of crude oil futures is an important link in establishing a normal order in the country and an important symbol of our move towards comprehensive opening up. The current international oil price is not too high and its impact on the domestic market is not too great. Overall, now is a good time to launch crude oil futures. (Photo source: Wind Financial Terminal) Yin Qiang said that the launch of domestic crude oil futures can provide futures prices based on domestic oil supply and demand, providing companies with more suitable risk avoidance tools and means. Avoiding the risk of market price fluctuations through the hedging function of the futures market can lock in corporate costs and profits, reduce corporate procurement or sales costs, and reduce the blindness of domestic corporate operations. At the same time, use the price signals of the domestic futures market to gain insight into market changes and better optimize the production and operation of enterprises. Developing crude oil futures can ensure the country's energy security and at the same time promote the smooth operation of the international market. By reflecting our actual needs and real prices through the crude oil futures market, we can effectively guarantee oil supply. In addition, it has a great stabilizing effect on the international market. China Merchants Securities Research reported that the "petroleum RMB" generated by RMB crude oil futures will supplement China's economy and help the internationalization of the RMB; The opportunity to influence the pricing power of international oil prices will help eliminate the price disadvantage of "Asian premium"; it can reduce companies 'spot oil inventories and capital occupation, and help complete strategic oil reserves. RMB crude oil futures will provide hedging channels for refineries to reduce exchange loss risks and transaction costs; domestic refineries, in addition to PetroChina Sinopec, Shanghai Petrochemical and Huajin, Hengyi Petrochemical, which is currently building private large refining and chemical projects, Tongkun Shares, Rongsheng Petrochemical and Hengli Shares will all benefit significantly. ZeroHedge previously commented on the "Petroleum RMB" saying that China will achieve a win-win situation in this move: the RMB can be fully exchanged for gold on the Shanghai and Hong Kong exchanges. The interchangeability of oil, RMB and gold has actually achieved a win-win result. The most important point is that doing so achieves the goal of de-dollarization. As early as more than 20 years ago, the China government had plans to carry out oil futures trading. In 1993, China launched its first domestic crude oil futures contract. Since China was in the reform stage of the energy industry at that time, the contract only lasted for one year. But in 2013, the China government signaled to the outside world for the first time that the petroleum yuan was about to be born. By doing so, the China government became the first country to resist the petrodollar system, preparing for the birth of the petroyuan. More importantly, the status of the US dollar as the main currency in circulation on the international stage has also been challenged. Now, this idea is about to become a reality. In the short term, it will not challenge the status of petrodollars."Petrodollars" were born in the oil crisis and rose rapidly. They reached prosperity in the 1980s. Petrodollars directly invested through long-term securities and other methods accounted for more than 60% of the total amount returned. However, the low and medium oil prices in recent years have caused the current account balances of oil-producing countries to turn from positive to negative in 15 years. In the conventional oil era, the national oil company system of OPEC countries can effectively control crude oil supply through internal consultation mechanisms; in the era of unconventional oil and gas, the participants are hundreds of independent oil companies, which cannot be unified and coordinated; In a sense, the traditional supply coordination mechanism has basically failed. The irreversible development trend of shale oil and gas has led to the transformation of the international oil market from sell-led to buyer-led; in addition, the weakening of the United States 'own external energy demand has led to challenges for the circulation mechanism of the "petrodollar". Bai Ming, deputy director of the Institute of International Markets at the Research Institute of the Ministry of Commerce, said in an interview with the media last month that China's oil consumption surpassed that of the United States on a monthly basis in 2012, and it is likely to surpass the United States on an annual basis to become the world's largest energy importer. The United States may become an energy exporter in the future. Therefore, China will have greater demand for the international market in the future. Therefore, China's demand for value preservation and price locking of imported crude oil appears to be very strong. Bai Ming said that crude oil futures, as a tool for hedging and hedging, are also a reflection of our active struggle for pricing power. It will not challenge the status of petrodollars in the short term. When long-term development reaches a certain stage, certain competition will arise, which may not be a challenge."It will attract some customers and suppliers to participate, but this group of customers may not abandon the markets of European and American countries." More business related to China should be in China. But this is beneficial to stabilizing the trade environment between China and oil-producing countries. How will the petroleum-RMB system be gradually established? Cheng Shi, chief economist and managing director of ICBC International, recently issued an article analyzing the prospects of petroleum-RMB, pointing out that at present, the high tide of diversification, the "shifting speed" of global recovery, and the lingering low oil prices have formed a synergy. The RMB provides an important historical opportunity to participate in future global oil settlement and pricing. However, the network externalities of international currencies determine that the establishment of the petro-RMB system will not be achieved overnight. Based on the share of global exports and the proportion of China's imports, the world's top 15 crude oil exporters are divided into different categories: Saudi Arabia, Russia, and Iraq rank among the top three crude oil exporters in the world, and China's imports also exceed 1/3 of the total imports. It is the most ideal target for breaking the outflow of oil and RMB; Angola, Iran, and Venezuela are the second, fifth and sixth largest sources of China's crude oil imports. It is more feasible for China to drive RMB settlement and pricing through imports; The top 15 crude oil exporters, the United Arab Emirates, Kuwait, Nigeria, and Qatar are expected to become potential areas for further expansion of the petroleum RMB through the leadership of OPEC. However, considering that these countries have relatively limited dependence on China's crude oil imports, China needs to rely on other multilateral and bilateral economic and trade cooperation measures to gain its acceptance of the RMB in oil trade. Considering that the economic structure of most oil-exporting countries is relatively single and China's financial market is not yet fully open, the return flow centered on importing China goods (services) and optimizing the structure of foreign exchange reserves will be the main carrier of endogenous demand for petroleum RMB. At present, Russia has begun to gradually accept the RMB as the settlement currency for oil trade between China and Russia, and economic and trade cooperation between Saudi Arabia and China is also continuously strengthened. With Saudi Arabia and Russia as the fulcrum, the petroleum RMB will have a spillover effect, driving more overseas companies to collect RMB for exports, and gradually increasing their willingness to hold and reserve RMB across borders. List of crude oil futures concept stocks in mid-term China: It is the only listing platform under the mid-term group, holding 19.76% equity in international futures. Longyu Fuel: In January 2015, the shareholders 'meeting approved the company to change the use of raised funds and jointly establish domestic and overseas companies with GlobalFarInc and Fu Yueqin to operate bulk commodity trading. Guanghui Energy: Its holding subsidiary Guanghui Petroleum has obtained the non-state trade import qualification of crude oil issued by the Ministry of Commerce. In 2014, the allowable import volume of crude oil non-state trade was 200,000 tons. Guanghui Petroleum can sell crude oil to refining companies that comply with industrial policies based on market conditions. The company must regularly report the implementation of crude oil imports to the Ministry of Commerce (Foreign Trade Department). Xiamen International Trade: Xiamen International Trade Group Co., Ltd. is a large-scale comprehensive enterprise founded in 1980 and listed in 1996. It has formed three core main businesses: trade, real estate, ports, and logistics. It is one of the largest 500 group companies in China and one of the top 100 listed companies in China. The company is determined to forge ahead and innovate continuously, and its main business is deepening and expanding in relevant areas of the industrial chain. Zhejiang Dongfang: Zhejiang Dongfang Group Co., Ltd. was established in 1988. In 1997, the company was successfully listed on the Shanghai Stock Exchange. Over the past ten years, with the continuous deepening of corporate reforms and the effective implementation of business strategies, the company has successfully transformed reform opportunities into positive benefits and achieved leapfrog development. Zhongda Products: It holds 95% equity in its Zhejiang Zhongda Futures, and its net profit contribution ratio is approximately 2%. Lay out financial controls to increase profits. In 2016, the company's financial business brought operating income of 370 million yuan (YoY-9%) and gross profit margin reached 73%. In 2016, the company participated in the establishment of Huashang Yunxinbao, initiated the establishment of Hangzhou Wunuo Fund, and also participated in holding dozens of financial and quasi-financial licenses. It is expected that the financial sector with higher gross profit margins will become one of the company's profit growth points in the future. A picture of understanding the "China version" of crude oil futures Photo source: 21st Century Economic Report