Regulator says stock index futures back to normal soon: sources

A top Chinese securities regulator said on Monday that trading in stock index futures will soon be “back to normal,” two sources said, suggesting the government is about to lift restrictions on such derivatives it imposed during China’s 2015 market crash.

Fang Xinghai, vice chairman of the China Securities Regulatory Commission (CSRC), made the remarks during an internal training meeting with futures brokerage executives, said the sources, who have direct knowledge of the matter.

The sources said Fang did not define “normal status,” but the easing gesture, made after China’s stock market has fallen about 14 percent this year amid a heightened trade rows with the US, points to regulators softening their approach.

The CSRC did not immediately respond to Reuters’ request for comment. China imposed restrictions on stock index trading during the stock market crash in the summer of 2015, sharply raising margin requirements and tightening position limits.

The CSRC also blamed foreign and domestic short-sellers for worsening a crisis that sent shockwaves across global financial markets.

But there were fewer signs of direct government intervention during last month’s panic selling, driven by the Trump administration’s imposition of tariffs on some Chinese exports.

China granted global hedge fund managers Bridgewater Associates LP and Winton Group licenses to launch products in China, a move that analysts said underscores the country’s commitment to financial deregulation.