BeijingBanks have never traded China’s carbon allowances directly.
Emitters trade to balance compliance books, so the price signal for investment stays noisy.
Their trades cluster near annual surrender deadlines, so buyers and sellers rarely meet, and banks would act as a buffer.
“Once there’s more liquidity, we’re likely to see price fluctuations ease,” said He Qing of Guotai Haitong.
China’s vice minister Li Gao wants the first financial institutions trading by year-end.
Sources: Dialogue Earth