Research On International Pricing Power Of China's Crude Oil Futures

In 2018,China has become the world's largest crude oil importer and the second largest crude oil consumer.However,in the international trade of crude oil,China still passively accepts crude oil prices and has no independent pricing power.The international pricing power of crude oil is in the hands of various futures exchanges around the world.China launched its own crude oil futures in March 2018 to compete for the international pricing power of crude oil.Whether it has significa nt impact on other crude oil markets,the extent of its impact,and the direction of its influence have become the hotspots of academic circles.This paper studies the mean spillover effect and variance spillover effect of China's crude oil futures on other international crude oil varieties.This paper select all the daily data after the listing of China's crude oil futures,establish a ternary VAR-GARCH-BEKK model.This paper build an international market system with China's crude oil futures,British BRENT crude oil and US WTI crude oil.This paper build an Asia-Pacific market system with China's crude oil futures,Dubai OMAN crude oil and Indonesian MINUS crude oil.The conclusions are as follows:First,the impact of China's crude oil futures on the international market is still limited.China's crude oil futures only have an asymmetric mean spillover effect on the US crude oil futures market,and the contribution rate of the impact is low.The British crude oil futures market has a one-way mean spillover effect and variance spillover effect on China.The US crude oil futures market has a one-way variance spillover effect on China's crude oil futures market.Second,China's crude oil futures have a certain influence in the Asia-Pacific market.China's crude oil futures market has a two-way mean spillover effect and variance spillover effect on the Indonesian crude oil market.China's crude oil futures market has a two-way variance spillo ver effect on the Dubai crude oil futures market and this effect is persistent.These two crude oil markets also have significant variance spillover effects on China's crude oil market in the long run.In order to enhance the status of China's crude oil futures in the international market,it is necessary to speed up the introduction of foreign investors,especially those in Europe and the United States.At the same time,China should order light and heavy sulfur crude oil futures contracts in an orderly manner to construct a full-fledged,multi-level crude oil futures trading market.