BEIJING -- The China Securities Regulatory Commission (CSRC), the country's securities regulator, said here on Monday it had approved the launch of methanol futures on the Zhengzhou Commodity Exchange (ZCE).

The exact time to start trading will be decided by the ZCE according to market conditions and the progress of its preparation, the watchdog said in a statement on its website.

The ZCE should make further preparations for the launch of methanol futures contracts, so as to avoid potential risks and ensure smooth trading, it said.

To prevent market manipulation, the bourse should also strictly monitor the early stages of methanol futures trading, especially on the actual delivery of the futures contracts, said the CSRC.

China produced 15.75 million tons of methanol in 2010, making up one-fourth of the global production. Meanwhile, the country's apparent consumption of methanol stood at 20.93 million tonnes, accounting for 45 percent of global consumption.