China’s Securities Regulator Calls for Improvement to Futures Market Activity

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A senior official from China’s securities regulator has called for further improvement to the quality of operations on the Chinese futures market.

Fang Xinghai (方星海), deputy-chair of the China Securities Regulatory Commission (CSRC) said that the test for the securities market amidst conditions of market uncertainty would be its ability to “help micro-actors to stabilise operating conditions and contain the impact of input factors on the Chinese economy.”

For this reason CSRC said it will “continually improve the legal and product systems, continue to improve the quality of operations on the futures market, raise the level of external opening, strengthen market supervision, and employ the role of the futures market in price discovery, risk management and resource allocation, in order to service the high-quality growth of the real economy.”

Fang made the remarks on 26 August at the 19th Shanghai Securities Product Market Forum (第十九届上海衍生品市场论坛).

According to Fang China’s securities market continues to see steady growth. Since the start of 2022 total funds on China’s securities market exceeded 1.6 trillion yuan and total positions surpassed 36 million, for a historic high. In the first half of 2022 commodity futures transactions totalled 2.978 billion, accounting for 69.7% of the global commodities transactions.

“China has been the world’s largest commodities futures market for many years,” said Fang, highlighting their role in price discovery, price signalling and effective risk management.