Guangdong’s first 2015 auction clears at 16.10 yuan, all 300,000 GDEAs sold

Published 11:22 on September 21, 2015  /  Last updated at 11:22 on September 21, 2015  /  China, China's Pilot Markets  /  No Comments

Guangdong on Monday sold 300,000 allowances at 16.10 yuan ($2.53) each, well above the minimum price of 12.48 yuan, the China Emissions Exchange in Guangzhou said.

Guangdong on Monday sold 300,000 allowances at 16.10 yuan ($2.53) each, well above the minimum price of 12.48 yuan, the China Emissions Exchange in Guangzhou said.

The auction was the first for the 2015 emissions year and was oversupplied, attracting bids as high as 20 yuan, the exchange said. A total of 19 companies submitted bids, including four institutional investors.

The allowance price in the secondary market closed Monday at 15.50 yuan, down from 16.20 yuan on Friday, with only 1,500 GDEAs changing hands.

The market operator had made changes to the auction rules following last year’s lackluster interest in government sales.

Overall volume available in auction has been cut by 75% to 2 million, and the minimum price is set ahead of each action at 80% of the volume-weighted three-month average secondary market price.

Last year the minimum price for all four quarterly auctions was set at the beginning of the compliance year, ending up far higher than secondary market prices in the over-supplied scheme.

By Stian Reklev – stian@carbon-pulse.com

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