China to Promote Futures Firm Listings, Regulator Vice-Chairman Says
Qi Qi
DATE:  Apr 22 2019
/ SOURCE:  yicai
China to Promote Futures Firm Listings, Regulator Vice-Chairman Says China to Promote Futures Firm Listings, Regulator Vice-Chairman Says

(Yicai Global) April 22 -- China will enhance policy support to promote  qualified futures firms to go public in the country as well as providing  a solid foundation for foreign-controlled players too, a leading figure  from the sector's regulatory body has said.

The futures market still possesses weaknesses in system supply,  market-building, investor structure and service capacity compared with  the demand for high-quality economic development, stated Fang Xinghai,  vice chairman of the China Securities Regulatory Commission, at a forum  in eastern Hangzhou yesterday. 

The commission will strengthen legislation in the futures market according  to current laws to meet the demand for opening-up and the rapid growth  of floor-trading and over-the-counter markets, he said, adding that the  body aims to improve administrative measures for futures exchanges and  firms and further study regulation rules for OTC derivatives to advance  the development and standardization of the market.

The commission will step up efforts to bolster risk management instruments  and expand the market. China has seen an accelerated emergence of  products on the futures market in the past two years, but they still lag  far behind the huge hedging demand in the real economy.

The commission must facilitate the opening-up of stock index futures and  other specialized products and gain access to international standards to  create a more inclusive system and provide foreign investors with  easier ways into the market, Fang added. 

The regulator must encourage futures companies to go expand overseas in a  steady way, Fang said, adding that it will promote the reasonable  positioning and prudent operation of their overseas units to improve  their ability to supply cross-border services. 

Editor: Xu Wei, William Clegg

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Keywords:   CRSC,Futures