SHANGHAI - The Shanghai Futures Exchange (SHFE) still hopes to launch a crude oil futures contract as part of new product offerings, but the timing depends on whether China revises its oil import laws, the general manager of the exchange said on Saturday.

The SHFE, which is largely closed to foreign participation, also hopes it would in time expand its membership to overseas entities, said Yang Maijun.

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"We are working to launch more products and crude oil is one of them. But the launch and the timing is dependent on whether there are changes to the current import restrictions and domestic spot market," Yang told reporters.

China's dependence on crude oil imports has soared and posted annual growth of more than 55 percent in 2010.

Yet, the country does not have a domestic futures contract for the setting of prices in the crude oil market, which makes it harder for domestic firms to manage price risks, Yang said.

The lack of yuan convertibility and other constraints were also preventing China from becoming a price-setter for Asia's metals industry, despite being the world's second-largest oil consumer and the biggest buyer of a host of base metals.

"Foreign entities are not able to directly participate in our futures. Therefore, the influence of Shanghai prices on the global market is limited. We are aiming and working towards expanding membership to foreign players," Yang said.

Currently, only a handful of State-controlled oil companies are licensed to import crude into China and are allowed to participate in overseas exchanges such as the IntercontinentalExchange or the New York Mercantile Exchange.

Private oil companies are also barred from distributing crude in China as the market is monopolized by big State-controlled firms.

Reuters