China is preparing to reintroduce trading in government bond futures nearly 17 years after a trading scandal resulted in a ban on the financial derivatives instrument, The Wall Street Journal reported, quoting a person familiar with the matter. The China Financial Futures Exchange recently issued a notice asking a select group of firms, including China International Futures Co and Yong An Futures Co, to begin technical preparations and training to participate in a trading simulation, the person said. The move appears to be part of the China Securities Regulatory Commission’s plan to further open up the country’s capital markets by rolling out more futures products under the leadership of new CSRC chairman Guo Shuqing. A spokesman at China Financial Futures Exchange declined to comment. Regulators banned government bond futures in 1995 after a major trading scandal trigged the market’s collapse.