The State Council, China’s Cabinet, on Monday unveiled revisions to the Administrative Regulations on Futures Trading, which included clauses to allow overseas institutions to enter the market.
“Qualified overseas institutions can conduct futures trading of certain products in futures exchanges,” the revised regulations read, adding that concrete measures will be made by futures management authorities under the State Council.
The State Council said in a statement on its website that this clause left room for overseas investors to directly participate in futures trading of crude oil, which the government is currently planning to roll out.
The statement said the revisions were made to keep up with new situations and resolve new problems in futures trading. Many trading activities in recent years have had obvious features of futures trading but were not properly supervised due to the lack of unified regulations.
The revision specified the definition and characteristics of futures trading to provide a clear legal basis for futures supervision and the rectification of illegal trading activities.
The revised version will take effect from Dec. 1, 2012.