CSRC issues draft rules for foreign trading of some commodities futures

The China Securities Regulatory Commission has issued draft rules for allowing foreign investors to trade in some of China’s commodities futures, potentially starting with crude oil futures on the Shanghai Futures Exchange, Reuters reported. The crude futures would be limited to qualified foreign investors participating through approved overseas or local brokerages, though traders could also apply for a direct trading license with the board itself. Presently, foreign companies are only allowed to trade via brokers after setting up a locally registered non-financial unit, which requires considerable registered capital.