China's third oil trading bourse,Beijing Petroleum Exchange, will open service after Olympic Games.

    The bourse, mainly engaged in physical trading of oil andpetrochemical products in north China, has so far invited 20enterprises to sign membership contracts. Included are PetroChina,Sinopec, Sinopec Yanshan Petrochemical and SinoChem.

    According to contracts, the members will put 50-80 billion yuan ofscheduled investment in the exchange annually, and purchase 80-100billion yuan worth of products.

    The bourse has no plan to launch product oil trade so far.

    According to analysts, Chinese oil giants have controlled mostproduct oil output, and the government kept capping on product oilprice. Therefore, it is hard to launch product oil trade, which haslimited price competition.