After nearly three years, another wholly foreign-owned futures company has been added. On May 26, the China Securities Regulatory Commission stated that in order to implement the relevant work arrangements for expanding the opening of the futures market to the outside world, the China Securities Regulatory Commission recently approved Morgan Stanley (Morgan Stanley) to establish Morgan Stanley Futures (China) Co., Ltd. in Beijing. (hereinafter referred to as “Morgan Stanley Futures”).
According to a reporter from “Securities Daily”, according to people familiar with the matter, Morgan Stanley Futures is wholly owned by Morgan Stanley. Morgan Stanley Futures is the second wholly foreign-owned futures company in my country and the 151st futures company in China.
In June 2020, the China Securities Regulatory Commission approved JPMorgan Chase Futures as my country’s first wholly foreign-owned futures company. According to the website of the China Securities Regulatory Commission, as of the end of April, there were 150 futures companies in my country, including UBS Futures and Qiankun Futures with foreign backgrounds.
According to public information, Morgan Stanley is an international financial services company established in New York, USA, and one of the first investment banks to enter China. On April 3 this year, Morgan Stanley’s “License for the Establishment of Futures Companies” was accepted by the China Securities Regulatory Commission. As early as January 2022, the list of qualified personnel for the professional ability evaluation test of futures company executives announced by the China Futures Association showed that three proposed executives from Morgan Stanley Futures had been passed.
In recent years, the laws and regulations of China’s futures and derivatives market have been further improved, laying the foundation for attracting foreign investment in the futures market. “Under the background of the promulgation and implementation of the Futures and Derivatives Law and the revision of the supervision and management measures for futures companies, a legal environment for the management of China’s futures industry in accordance with laws and regulations has been established, which also means that the conditions for the futures market to be in line with international standards are more sufficient. The conditions for participating in domestic futures-related business are already in place.” Jing Chuan, deputy general manager of Wuchan Zhongda Futures, told the “Securities Daily” reporter that the business scope of futures companies continues to expand, laying the foundation for the further development of futures industry functions and the multi-dimensional comprehensive operation of futures companies. After laying a certain foundation, it will inevitably attract foreign futures companies to enter.
At the same time, the entry of foreign futures companies will further promote the opening up of the domestic futures market. Han Gan, a professor at Lingnan College of Sun Yat-sen University, told the Securities Daily reporter that clients of Morgan Stanley futures include not only some important financial institutions in overseas markets, but also some important industrial clients. The establishment of Morgan Stanley futures will help to improve The international influence of China’s commodity prices is also conducive to promoting the internationalization of the RMB.
Jing Chuan said that the introduction of foreign-funded futures companies will enhance the diversification of competition in the domestic futures industry, and to a certain extent, promote the professional capabilities of domestic futures companies, increase and learn from new business models, and enhance the international vision and global economic services of domestic futures companies. Ability.
On May 25, Fang Xinghai, vice chairman of the China Securities Regulatory Commission, stated at the 20th Shanghai Derivatives Market Forum that he would continue to expand the breadth and depth of opening up the futures market.
“At present, we have opened 23 specific futures varieties to overseas traders, and 39 commodity futures and options varieties to QFII and RQFII. Among them, primary products accounted for 96% and 70% respectively. We will continue to Steadily expand the opening of specific varieties of futures, broaden the investment scope of QFII and RQFII, attract more foreign institutions to fully participate in the pricing of my country’s primary product futures varieties, improve the representativeness and influence of my country’s futures prices, and provide more accurate price signals for industrial enterprises.” Fang Xinghai said.
The China Securities Regulatory Commission stated that in the next step, it will continue to deepen the opening up of the futures market, support qualified overseas institutions to invest in domestic futures companies, continuously improve the quality of futures market operations, and serve the high-quality development of the real economy.
