BEIJING (XFN-ASIA) - The China Securities Regulatory Commission is soliciting comment on draft rules allowing more institutional investors, particularly fund management companies, to invest in Chinese futures markets, the official China Securities Journal reported, citing a regulatory source.
The newspaper said the mechanism for expanding institutions' investment destinations is the so-called Commodity Trading Advisor (CTA) scheme, under which a firm receives compensation for giving advice on options, futures and the actual trading of managed futures accounts.
The CSRC will qualify some futures brokers to set up CTA subsidiaries under a pilot program. These CTA firms can only provide advisory services for trades in domestic futures and spot commodity markets, and are not to raise funds directly from investors, the report said.
Registered capital of CTAs will be at least of 30-50 mln yuan, the report said.
Qualified futures companies are required to separate their futures brokerage business and CTA businesses, the report added.
China currently allows fund management companies to invest in bonds, stocks, warrants and money markets.
zachary.wei@xfn.com - xfnzw/xfntm COPYRIGHT Copyright Thomson Financial News Limited 2009. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2009 AFX News
