BEIJING — China has published a guideline to speed up the launch of risk management business by futures companies, according to the China Futures Association (CFA).
The guideline will instruct the futures firms to establish subsidiary corporations mainly piloting operation of risk management business.
CFA data showed that by the end of December 2018, there are 79 risk management companies in China’s futures industry, 28 more than that in 2015.
The total asset of the risk management companies amounted to 34.42 billion yuan (about $5 billion), while their business revenue reached 113.25 billion yuan by the end of December last year, according to the CFA.
The guideline further illustrates the business types, adds restrictive measures for unqualified companies and details the negative lists for the development of risk management business, an official with CFA said.
“In the future, the CFA will closely inspect on the development of risk management business carried out by the futures enterprises and make the futures industry better support the real economy,” said the official.