BUSINESS Carbon shares surge ahead of carbon trade market opening in China

BUSINESS

Carbon shares surge ahead of carbon trade market opening in China

Global Times

14:10, June 23, 2021

The opening ceremony for carbon trading at Shanghai Environment and Energy Exchange on Tuesday. (Photo: CFP)

China's carbon neutrality shares shoot up on Wednesday morning, with one stock reaching the daily trading cap, after the Shanghai Environment and Energy Exchange listed trading regulations of the upcoming carbon emissions trading market in a notice it released on Tuesday.

By 10:04 am on Wednesday morning, China's carbon neutrality shares rose by 1.17 percent in general. One share, the China Three Gorges Renewables (Group) Co, surged to the trading limit of 10 percent shortly after the stock trading opened. The company's shares had been touching trading limit for five consecutive trading days.

More than 40 carbon related shares edged up, while about 20 edged down during trading. The sector had risen by 37 percent in share price in the past year, and up more than 3 percent in the past month.

The carbon neutrality shares surged one day after China announced details of how to trade on the upcoming carbon emissions trade market, which is believed to open around end of June.

According to a notice published by the Shanghai Environment and Energy Exchange, up to 100,000 tons of carbon dioxide equivalent can be traded in a single deal. The authorities also imposed a 10 percent price fluctuation limit on the carbon trade.

Some overseas media believed that the market will likely see prices around 40 yuan ($6.21) per ton initially as a result of oversupply.

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