China and Germany to Cooperate Further on Futures Regulation

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The Chinese and German governments plan to engage in greater cooperation when it comes to the regulation of cross-border securities futures.

On 18 January Chinese vice-premier Liu He and Germany’s Federal Minister for Finance Olaf Scholz bore witness to the signing of the “Securities Futures Regulatory Cooperation Memorandum of Understanding” (证券期货监管合作谅解备忘录)between the China Securities Regulatory Commission (CSRC) and the German Federal Financial Supervisory Authority at the 2nd Sino-German High-level Financial Dialogue.

According to the Chinese central bank’s official news outlet the move marks the “start of a new era for cooperation between Chinese and German securities futures regulatory agencies.”

“Over the past few years CSRC has actively supported the launch of a D-share market by the China Europe International Exchange (CEINEX), in order to provide support and convenience to high-quality Chinese enterprises undertaking financing via European capital markets.”

Thee signing of the memorandum is considered an update of the”Securities Regulatory Cooperation Memorandum of Understanding” (证券监管合作谅解备忘录) executed by China and Germany in 1998, and will have “major significance for further strengthening regulatory cooperation,” particularly with regard to D-share listings and cross-border securities and derivatives.

CSRC has established mechanisms for cross-border regulatory and enforcement cooperation with the securities futures regulatory agencies of 63 countries and regions.

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