Door opens for global firms in futures trading

The China Securities Regulatory Commission released rules on Friday covering futures companies, encouraging overseas investors to participate in the Chinese market.

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China will make institutional arrangements for overseas traders that are participating in particular futures products markets, according to the rules.

"For instance, we will loosen the limits on clients opening futures accounts and remove obstacles to bringing in overseas clients to the crude oil market," said Deng Ge, a spokesman for the CSRC.

Deng said the CSRC is working closely with other ministries, commissions and institutions on preparations for a Chinese crude oil market, and it will be launched as soon as possible.

Jiang Yang, vice-chairman of the securities regulator, said earlier that China aims to launch its first crude oil futures contract this year.

Rules covering Chinese futures companies bringing in outbound shareholders and setting up overseas institutions have been finalized.

"The requirement covering foreign shareholders in Chinese futures companies are complete, as are those on Chinese companies going abroad," said Deng.

In late 2013, the CSRC approved UBS Securities Co Ltd's application to acquire Shanghai Pumin Futures Brokerage Co, which made it the fourth Chinese futures company with foreign capital.

The first merger and acquisition deal involving a Chinese buyer was that of GF Futures Co Ltd, which acquired United Kingdom-based NCM Futures Co in 2013.

Acquiring foreign futures firms can bring advanced trading strategies and services and lead to higher profits, said Xiao Cheng, vice-chairman of GF Futures.

Xiao said the rules of the CSRC are good, but acquiring foreign futures companies has been more difficult because the cost is increasing amid the recovery of the United States and European economies.

According to the commission, Chinese futures companies' globalization not only helps diversify their own businesses, it also helps other Chinese enterprises go abroad and improve their risk management capabilities.