Legislation roundup: Stock index futures, treasury bond futures and insurance complaints

July 18, 2013 | BY

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The CSRC has released two Guidelines for the trading of treasury bond futures. The CIRC has also released Measures for dealing with insurance consumer complaints

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Capital markets

China Securities Regulatory Commission, Guidelines for Participation in the Trading of Stock Index Futures and Treasury Bond Futures by Securities Companies (Draft for Comments)

Securities companies will be the first ones, among other institutional investors including banks and insurance companies, to be allowed to tap into the newly reopened treasury bond futures market. The Draft suggests that securities companies with the qualifications to trade securities on their own account may trade stock index futures and treasury bond futures with their own capital or capital entrusted to them for management and thus are no longer restricted by the hedging purpose pre-requisite.

Further reading


China Securities Regulatory Commission, Guidelines for Participation in the Trading of Treasury Bond Futures by Publicly Raised Securities Investment Funds (Draft for Comments)

According to the Draft, only equity, mixed-asset and bond funds may participate in treasury bond futures trading, but limited to the purpose of hedging. Money funds and short-term wealth management funds are not allowed. The total amount of treasury bond futures contracts held by a publicly raised fund may not exceed 30% of the fund's net asset value.

Further reading


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Insurance

China Insurance Regulatory Commission, Measures for the Administration of the Handling of Insurance Consumers' Complaints

China has its first legal rules on handling insurance consumers' complaints. Insurance companies are required to render a decision within 10 working days for simple cases or within 30 working days for more complex cases from the date of accepting an insurance complaint.

Further reading

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