A new derivatives exchange could be set up in Shanghai as early as next month but it may be some time before any products are developed. Quoting senior government sources and state media, the South China Morning Post said the launch fits with efforts by securities regulators to improve practices in an industry traditionally plagued by scandals. Detailed regulations for a margin financing programme and new tougher rules and penalties for companies that extract funds illegally from affiliates are also expected soon. The newspaper said margin financing will likely be tightly controlled and restricted at first.
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