By Dow Jones Business News, September 29, 2013, 09:35:00 PM EDT
SHANGHAI--China will allow some liberalization for securities and futures companies in the Shanghai Free-Trade Zone,
part of Beijing's pledge to ease restrictions on the service and financial sectors, an official said Sunday, citing a
memo from the country's securities regulator.
The zone will be officially launched Tuesday, China'sState Council, or cabinet, said Friday.
The China Securities Regulatory Commission has given a greenlight to the Shanghai Futures Exchange to set up an energy
company aimed to push for the buildup of an international crude oil futures trading platform, Dai Haibo, deputy head of
the Shanghai Free Trade Zone committee, said at a press briefing, citing a memo from the CSRC.
"This platform is expected to attract foreign investors to participate in the futures market in the domestic market,"
which helps China's futures market open up more to foreign competition, Mr. Dai said, quoting the memo.
"Qualified" companies and individuals in the zone will be allowed to do "two-way" investment and trading in securities
and futures, Mr. Dai added.
Corporates' overseas parent companies are going to be allowed to issue yuan-denominated bonds in the domestic market,
according to Mr. Dai.
The CSRC will also support securities and futures companies to set up specialized units in the zone, and a first batch
of those firms are already doing preparation work to set up risk management and asset management units there, he added.
Securities and futures companies in the zone will also be allowed to do over-the-counter trading in commodities and
financial derivatives in the domestic market, Mr. Dai said.
China's government said in the statement Friday that the Shanghai zone is a testing ground for reform on a national
level. It has been hailed as a major step in opening up key areas of the economy to more competition and private
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