Starting from December 1, foreign enterprises can buy into
Chinese futures companies on the condition that the Chinese side
holds these companies, according to the Provisional
Regulations on Direction Guide to Foreign Investment (2007 revised
edition) newly released by the National Development and Reform
Commission (NDRC) and the Ministry of Commerce (MOC).
Previously, the Chinese government prohibited foreign presence
in the futures market. "Given the fact of the Chinese future
market's small size and extremely limited diversity several years
ago, prohibition of foreign presence was beneficial to the
development of the futures market at that time," said Professor Guo
Tianyong of the Central University of Finance and Economics. Now
Chinese futures markets have grown bigger and more diverse, with
stock index futures and gold futures, among many others to be
launched soon. And the presence of foreign investment will urge the
Chinese futures companies to improve their business and push the
futures business to develop in good direction, Guo added.
For more details, please read the full story in Chinese. (http://www.cs.com.cn/xwzx/03/200711/t20071108_1241168.htm)
(China.org.cn November 8, 2007)
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