According to reports in the Chinese newspaper Economic Observer, Fan Fuchun, currently vice-chairman of the China Securities Regulatory Commission, will head the exchange.
Shanghai, Dalian and Zhengzhou already permit trading of commodity futures, but China lacks an exchange for trading in financial futures. The new exchange will initially list stock index futures, followed by interest rate and currency exchange futures.
Financial derivatives trading was re-legalised in October 2005 after a 10-year ban prompted by a 1995 treasury bond future scandal, in which short-selling of bonds threatened to cause a financial crisis.
The week on Risk.net, May 12-18, 2018Receive this by email