Politics & Regulation

China modifies regulation around futures trading


In a latest round of reforms, the Chinese government has revised the rules for futures trading, opening yet another door for the creation of hedge fund strategies in the country.

The new directive, titled “Decision of the State Council on Amending the Regulation on the Administration of Futures Trading” was promulgated on October 24 and will be effective as of December 1, 2012.

It clearly defines “futures trading”, and also does away with regulations related to “disguised” futures trading.

Many in the industry see it as a step to facilitate the needs of the crude