December 02, 2008

Taiyuan Coal Exchange to open in November

The Shanghai Securities News reported that China Taiyuan Coal Exchange, the first of this kind in China, will be put into operation in November of this year at the soonest,

The coal exchange, with a total investment of CNY 1 billion includes the construction of the exchange center and a coal base in Qidong city, East China's Jiangsu Province. The coal exchange is similar to the Zhengzhou Commodity Exchange and a membership trading system will be adopted.

As per a researcher with the Shanxi Academy of Social Science, the exchange is expected to facilitate the trading of around 500 million tons of coal annually in its initial stage.

Thirty enterprises have invested in the exchange, including Shanxi Coal Transportation and Sales Group Co Ltd, the biggest shareholder, who will control 10%. Other major shareholders in the exchange are China's leading electric power groups, including China Huaneng Group, China Datang Corporation and China Guodian Corporation. Each of the three giants holds 4% of the exchange. China Power Investment Corporation and China Huadian Corporation each have 3% stake in the exchange. Shanxi based Datong Coal Industry Co Ltd, Shanxi Coking Coal Group Co Ltd, Jincheng Coal Industry Group and Yangquan Coal Industry Group Co Ltd are also shareholders. However Shenhua Group, China's biggest coal producer, has no stake in the exchange.