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Energy Finance and Trade Credit: Evidence From China's Shanghai Crude Oil Futures

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  • Changchun Pan
  • Yuhang Song
  • Paresh Kumar Narayan
  • Yuzhe Huang

Abstract

This study explores the impact of the Shanghai crude oil futures (SC) market on corporate trade credit financing in China. Using data on listed firms from 2012 to 2023 and a difference‐in‐differences model, we find the launch of SC significantly increased trade credit financing for oil‐dependent firms. Mechanism evidence suggests that SC is associated with improvements in credit risk and market information environment, which are economically consistent with suppliers' trade credit decisions. Cross‐sectional analysis reveals stronger effects among firms with higher investment capacity, higher production costs, and lower transparency. Economic consequences analysis suggests the effect further stimulates corporate capital investment and technological innovation. The results demonstrate how innovations in energy finance may support the real economy and contribute to the stability of China's energy industries.

Suggested Citation

  • Changchun Pan & Yuhang Song & Paresh Kumar Narayan & Yuzhe Huang, 2026. "Energy Finance and Trade Credit: Evidence From China's Shanghai Crude Oil Futures," Journal of Futures Markets, John Wiley & Sons, Ltd., vol. 46(9), pages 1607-1630, September.
    • Handle: RePEc:wly:jfutmk:v:46:y:2026:i:9:p:1607-1630
    DOI: 10.1002/fut.70123
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