The Uncertain State of Futures Trading in China
February 28, 2003 | BY
clpstaff &clp articlesFutures trading in China has had a chequered past. New rules make for a limited opening of the sector, and might constitute a new beginning for China's futures markets, though further legislation is needed to clarify the opportunities for foreign investors.
Hong Kong
The China Securities Regulatory Commission's (CSRC) issuance of the Issues Relevant to Capital Contributions to Futures Brokerages Circular (关于期货经纪公司接受出资有关问题的通知) (the Circular) repeals a 1996 ban on direct and indirect foreign investment in futures brokerages. The Circular is indicative of two important trends: first, it reflects the continued gradualist approach to the opening of the PRC financial services sector; and second, it shows the increasing importance China's futures markets hold as a tool to hedge against foreseeable risks of business transactions.
The Rise and Fall of Futures Trading
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