China – Foreign Owned Futures

China – Foreign Owned Futures

On 4 May, CSRC proposed foreign investments in futures firms.

  • To enhance economic capability and competitiveness of China’s futures industry.

Measures

  • A foreign-invested futures company is defined futures company in which single
    or associated foreign shareholder holds more than 5% of the company's equity.
  • Shareholders must have good international reputation, operating performance.
  • Foreign investors are required, to control over 5% of stock of futures company.
  • Number of senior managers with nationality of People's Republic of China must
    not be less than one third of the total number of senior management personnel.
  • Contains requirement for the deployment of text language, information system.
  • To make further revisions, publish procedures after publicly soliciting comments.