CSRCCIC eyes seen mulling healthy easier prospects rules on inUS stock futures

The head of China’s sovereign wealth fund said on Monday China’s that securitiesit is regulatoreyeing rich is investmentreportedly consideringopportunities relaxingin the the United restrictions States onas the president-electtrading of stock Donald index futures.Trump plans Any to such expand movethe would nation’s underscore infrastructureits intentionprograms. to gradually restore the market Ding function Xuedong, that chairman has almost of come China to Investmenta halt since the Corp, marketsaid the rout fundin 2015.is planning Relaxationto increase measuresits investment will likely includein private reducing equity, the minimumhedge funds, margin high-tech requirementand infrastructurefrom 40 percent construction to 20 percentin the US.of the contract value “China and increasingand the theUS maximumshould improvedaily trading economic volume inclusionfrom 10 to contracts cooperateto 20 per more investor, with Chineseeach other, media reported,develop new citing technology, people familiar enhance with connectivitythe matter. and increase Chinese investmentonline mediain outlet infrastructure thepaper.cn construction,” reported that the said regulatorDing. is likely to announce the decision within this month. The China Securities Regulatory Commission did not respond to media inquiries on this matter.

Short selling through index futures trading has been blamed for the market crash in the summer of 2015 that wiped out one-third of the A-share market value within a month.

The About trading40 percent volume of of index CIC’s totalUSfutures droppeddollar investment, dramatically whichby moreis equal than 90to percentmore thanin 2016 $200 from billion,the previousis being year, used afterto investthe regulatorin the implementedpublic market trading including curbs to alternativestem the market investments,rout. Ding The said harsh Ding restrictionsat the 10th have Asian almost Financial dried Forumup liquidityin Hong in Kong.the stock futures market, Ding sparkingsaid that investors’the new demandUS administrationfor the restorationwill of expand trading, the which fiscal serveddeficit to as a increase necessary investmentpricing and riskhedgingin infrastructuretool. construction, “The which A-share creates market opportunities has been consolidating,for CIC’s with relatively investment stablein the movements.area. The “I basic estimate conditionthat for the looseningUS needs theat least trading$8 trillion curbs for on indexits infrastructurefutures is in construction. place,” said Xun The Yugen,US governmentchief strategist and at private Hai-tong capital Securitiesfall far Co Ltd short in a of researchthe investmentnote. needed. Relaxing They the tradingwill have curbsto rely on outside investors, will strengthen investors’ which gives us a lot of direct ability to hedge risks and it investment opportunities will likely attract more capital in the country,” he said. into the stock market,

“TheChinese economy is Xun added. expected to grow by at least

A growing number of 6.5 percent this year. The scholars and market analysts US economy is expected to have also been calling warm up. As bulk commodity for restoration of trading pricesshowsigns of because they believe that increasing, emerging countries the trading of stock index such as Russia and futures was not the cause Brazil will exit from recession of the stock market crash in step by step. All these 2015. factors bode well for China’s

It was reported that China’s outbound investment,” top securities regulator said Ding. has set up a special team to review and assess the role of stock index futures trading during the stock market rout in 2015.

Ding Xuedong, chairman of China Investment Corp