Hong Kong eyes oil commodities exchange

HONG KONG, China (AP) -- Hong Kong plans to launch a new exchange to trade fuel oil and other commodities in an effort to capitalize on the booming market for raw materials in China, officials announced Wednesday.
Traders stare into computers at the Hong Kong Stock Exchange in early June.
The Hong Kong Mercantile Exchange will trade U.S. dollar oil contracts when it opens in the first quarter of 2009, then expand into other commodities trading, the exchange said in a statement.
The fuel oil, to be stored along southern China's border, will be available for delivery on the mainland or overseas.
Backers say the exchange would be a bridge between China and global investors, helping set prices that better reflect the country's surging demand for oil and other raw materials. It would also give traders access to one of the fastest-growing markets for energy.
"There is a huge opportunity for Hong Kong to develop a commodities futures market that can cater to the mainland and we are delighted to see the creation of (a commodities exchange) to accommodate these needs," Hong Kong Financial Secretary John C. Tsang said in a statement.
The exchange will be chaired by Barry Cheung, former Deputy Chairman of Titan Petrochemicals Group., an transportation and oil-storage company.
Possible investors and members include Lehman Brothers, Merrill Lynch, Morgan Stanley and other major companies, officials said.