The establishment of a vibrant oil commodities futures market in Hong Kong will not only help the city strengthen its position as an international financial center but also assist the mainland fuel its economic development, said a leading Hong Kong political party.

    The stock market in Hong Kong has seen robust growth in recent years, thanks to the fast-recovering economy. The futures market, however, lags far behind. A vibrant commodity futures market will provide a powerful thrust to the territory's economy, said Democratic Alliance for the Betterment of Hong Kong (DAB).

    The party's economic affairs spokesman, Chan Kam-lam, said that after thorough research, the party has found a commodities market will benefit the city greatly.

    "Particularly in the oil sector, because the fast-growing mainland economy generates an increasingly high demand for oil," said Chan. "China relies heavily on oil and consumes large amounts of it but plays a relatively smaller role in the global oil market."

    If a sound oil futures trading system were built up in the city, Hong Kong would dominate the world market "like New York and London", he said.

    DAB has said in a report that Hong Kong will make a perfect complementary futures trading partner to New York and London given its rich talent pool, the city's status as a global financial hub, its dynamic banking system and its experience in risk management .

    The party said it has prepared an extensive report on the subject and will submit it to the central government.

    "We have discussed the proposal with officials of the Hong Kong government, including Financial Secretary Henry Tang, and have received a very positive response," said Chan.

    The party hopes to talk with the mainland authorities and urge the National Development and Reform Commission to consider the proposal.

    In the last three years, the mainland has overtaken Japan to become the second-largest oil consumer, next only to the US. China's oil demand has been doubling every 10 years, according to the International Energy Agency.