The State-owned Assets Supervision and Administration Commission (SASAC) and the China Securities Regulatory Commission (CSRC) have drafted new hedging regulations to loosen restrictions on central government-owned companies' ability to hedge on futures markets, Interfax reported, citing a source with one of China's leading futures trading companies. The source told the agency the commissions had circulated the new regulations to the companies for feedback. The Chinese government started allowing central government-owned companies to hedge on futures markets in 2000, but SASAC tightened restrictions after China Aviation Oil Holdings and the State Reserve Bureau both racked up huge losses in international futures trading in the past couple of years. The source said companies will need to have integrated risk controls and upper management with rich hedging experience to receive a trading license.
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