Launch of financial futures delayed

The launch of China's first financial futures products will be delayed until at least the second quarter of 2007 due to insufficient regulations and fears of the impact on domestic stock markets, the South China Morning Post reported. Simulated transactions on the Shanghai-based China Financial Futures Exchange have been going on for nearly four months to prepare for trading. But a source close to the securities regulator told the newspaper that there wasn't yet a timetable for the launch. It is said that senior government officials have not approved the regulations as they fear a repeat performance of the treasury bond futures crisis of 1995, which led to financial futures being abandoned. There are also concerns that the surging domestic stock markets could stumble as, through futures, investors could make money from falling prices.