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)
