Shenzhen Emission Allowances 2015 vintage (SZA2015) have been allocated to the covered entities; trading will start from 1 July 2015.
Carbon prices across Chinese markets fell by as much as 42% as several covered entities seem to have purchased the required compliance instruments.
Only 10.5% of the allowances offered by the Guangdong Provincial Development & Reform Commission were cleared in the final auction of compliance year 2014.
Guangdong Carbon Emissions Exchange will waive off transaction and annual membership fees for traders and institutional investors.
Of the 190-odd entities covered under the Shanghai carbon market, 37 entities surrendered emission allowances on 1 June.
Shenzhen emission allowances rallied as covered entities continued to acquire allowances to meet compliance obligation.
Guangdong will offer 3 million allowances in the last auction of the compliance year on 10 June 2015.
Despite high traded volume in nearly all pilot carbon markets in China, none of the allowances could close the week with any surge in transaction price.
Volatility was rampant in almost all Chinese carbon markets last week. Only Shenzhen and Hubei carbon markets managed to show strength.
Over-supply fears gripped the Chinese carbon markets as emission allowances found no takers even at record-low prices.