The China Securities Regulatory Commission has released a new regulatory guidance on foreign-invested futures companies, The Paper reported.
According to the new rules, the proportion of shares held by foreign shareholders, including direct holding and indirect control, of foreign-invested futures companies shall be in line with the country’s arrangements for the opening up of the futures industry.
Meanwhile, the directors, supervisors and senior management personnel of a foreign-invested company shall have qualifications stipulated by the CSRC. Senior executives of foreign-invested futures companies must also perform their duties on the ground in China.
Foreign institutions which plan to set up futures companies in China, must also apply to the commission with documents that include audited financial statements from the previous three years, along with legal opinions issued by Chinese law firms and others.
Also, foreign-invested futures firms are required to locate their core servers for transaction, settlement and risk control in China, as well as data equipment recording and storing customer information.