CHINA GRANTS OVERSEAS INSURERS ACCESS TO SECURITIES FUTURES

Foreign-based insurance companies, along with qualified foreign institutional investors, are expected to be granted access to China’s futures market, according to statements made by the head of the China Financial Futures Exchange Settlement Department. Chen Han, who was speaking at a derivatives conference held in Shanghai, said that he believed that well performing insurers will eventually be permitted to trade stock index futures provided that there is clear evidence of adequate risk control. Han also said that such a move would be recognition of the fact that overseas insurers are one of the biggest groups of foreign investors active in China and therefore should be permitted access to the futures market.