China Overhauls Futures Firm Rules to Curb Financial Risks

China’s securities regulator has unveiled a sweeping overhaul of rules governing futures companies, imposing strict capital requirements and capping ownership to rein in financial risks.

The revised measures, effective Jan. 1, 2027, will push firms to refocus on their core derivatives business after years of rapid expansion. 

The China Securities Regulatory Commission (CSRC) will categorize operations into basic and trading classes, requiring at least 1 billion yuan ($149 million) in registered capital for firms conducting multiple trading activities, such as market making. Firms conducting basic domestic brokerage will be required to have a minimum of 100 million yuan.