DALIAN/BEIJING - The trading of options for three major chemicals, namely polypropylene (PP), polyvinyl chloride (PVC) and linear low-density polyethylene (LLDPE), were launched Monday at the Dalian Commodity Exchange in Northeast China's Liaoning province.

The listings of the three chemical options will help boost the risk-management ability of petrochemical enterprises, and support the sound and stable development of the petrochemical industry.

PP, PVC and LLDPE are three major plastic chemical products, and China is a major producer and consumer of these products.

Options, like futures, are important basic derivatives in mature international markets, and play an irreplaceable role in helping industrial enterprises mitigate risks, said Fang Xinghai, vice-chairman of the China Securities Regulatory Commission (CSRC).

Steadily boosting the growth of the options market is a key part of the CSRC's efforts to improve the derivatives market and meet the risk-management needs of enterprises in the real economy, he said.

China launched its first commodity option, the soybean meal option, in March 2017. Since then, 16 commodity options have been listed, covering sectors including agricultural products, metals, energy, chemical industry, Fang said.

Seven of the options, along with 20 futures, have been listed for trading at the Dalian Commodity Exchange, according to the exchange.