I thought I heard Bloomberg say there will be both USD and CNY denominated futures trading. If a trader can freely buy with CNY and sell to USD, it can be used to bust the capital controls, either that or a severed link between Shanghai oil and the rest of the world will see them drift away from all other oil prices. Has anyone seen any details anywhere? All I get is PR, and this is sad: http://www.shfe.com.cn/en/
Is Shanghai oil a hole in Chinese capital controls? Not really. You still can't take your money in foreign currency out of the country freely so capital controls is still in place. This new oil futures market is actually another way for China to suck in more foreign currencies which really makes you wonder though. On one hand, China hates America so much and is trying to dump US treasuries and yet at the same time, it's still creating new venues to accumulate more USD. LOL
According to this article, http://www.scmp.com/business/china-...oil-futures-flying-start-beijing-vies-pricing, the new China oil futures is supposed to provide China some pricing leverage in the oils market, taking some pricing powers away from the two exchanges, the ICE and the NY Merchantile located in the evil USA. LOL How they are gonna do that when nobody wants to trade in the Chinese market because they won't be allowed to take their money out of China? I dunno.