Shady Investments, Cloudy Official Response
A new State Council draft regulation has cast a shadow over futures exchanges that have popped up in China in recent years. Released on December 21, it says local governments may be held responsible for investigating and punishing illegal exchanges.
The draft follows a circular that the State Council, China's cabinet, released on November 11. This circular, known as Document No. 38, required the China Securities Regulatory Commission (CSRC) and provincial governments to form a commission to grant approval to various types of exchanges for items ranging from art to commodities. The CSRC was also told to coordinate the work of various departments and provincial governments in sorting out illegal futures exchanges.
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