The China Securities Regulatory Commission ("CSRC") has recently, in concert with relevant ministries and commissions, formulated and issued the Administrative Measures for Foreign-invested Futures Companies (Draft for Comment) (the "Draft for Comment") for public consultation by June 4, 2018.

The Draft for Comment contains major provisions in the following respects:

(1) specifying the sphere of application. A foreign-invested futures company is defined as a futures company of which over five percent equity is directly held or indirectly controlled by a single shareholder or by several overseas shareholders with an affiliate relationship;

(2) detailing the criteria for overseas shareholders. Each overseas shareholder must be a financial institution, enjoy a good reputation in the globe and have satisfying business performance;

(3) regularizing the indirect shareholding. Over five percent of a futures company's equity under the actual control of an overseas investor through investment relations, agreements or other arrangements, is supposed to be converted into directly held shares;

(4) laying down rules on duty performance of senior executives. And the fifth is outlining requirements on the language of documents and arrangements for the information system.

(Source: China Securities Regulatory Commission)