China Securities Regulatory Commission publicly seeks opinions on the "Regulations on the Supervision and Management of Futures Companies (Draft for Soliciting Opinions)" and its supporting implementation measures.

On April 17th, the China Securities Regulatory Commission publicly solicited opinions on the "Administrative Measures for the Supervision and Management of Futures Companies (Draft for Comments)" and supporting implementation regulations. The new "Administrative Measures for the Supervision and Management of Futures Companies (Draft for Comments)" will change the management of futures market-making trading and derivative trading businesses that were originally operated by risk management subsidiaries, had to be registered with the futures industry association, and were self-regulated, to be operated by futures companies. Furthermore, it will implement licensing access and administrative supervision, strengthen the supervision of futures company subsidiaries and branches, and propose ensuring that futures companies providing market liquidity to the futures market through continuous bilateral quoting, bilateral responding quoting, and other methods. Additionally, the net fundraising scale of futures asset management plans established by futures companies must not exceed five times the net fundraising scale of the futures and derivative asset management plans established. The draft also includes provisions on the establishment, change, and termination of futures companies, the qualifications and responsibilities of shareholders and actual controlling persons, as well as the establishment and management of subsidiary companies and branches, among others. The draft document was released for public comments for further refinements before its final implementation.