Has INE Obtained The Pricing Right For Crude Oil Futures In Asia?

As the world's second largest economy and the largest crude oil importer,China has a high degree of dependence on foreign crude oil,and needs to have a regional and even worldwide influential crude oil futures to meet the actual needs of different individuals at home and abroad.On March 26,2018,China's new crude oil futures trading product(INE)was officially listed in Shanghai international energy trading center.One of its objectives is to establish its own pricing power of crude oil futures in Asia.This paper introduces the Chinese crude oil futures market and other major crude oil futures markets in the world.On this basis,firstly,it qualitatively analyzes the characteristics and shortcomings of the major crude oil futures markets in Asia at present,and compares them with the Chinese crude oil futures market in order to obtain a suitable target for comparison.Finally,it selects the Japanese crude oil futures market(TOCOM Dubai)as the comparative target of ine in Asia.Further empirical tests are carried out to study the spillover effects of WTI and Brent,the main crude oil futures in the world.TOCOM Dubai and ine,the representative of Asian crude oil futures,are chosen to build vecm-bekk-garch model.Through the empirical test,it is found that the impact of WTI and Brent on ine is less than the spillover effect of both on TOCOM Dubai,and ine has obvious spillover effect on TOCOM Dubai.It can be concluded that ine has initially obtained the pricing power in the Asian crude oil futures market,and based on this conclusion,relevant policy suggestions are provided.