The China Securities Regulatory Commission (CSRC) has launched its "largest-ever" spot check on futures traders, as part of the country's effort to fend off financial risks and ensure market stability, the Securities Daily reported Monday.
The spot check is being conducted jointly by various government agencies, futures exchanges, monitoring centers and industry associations. It is aimed at inspecting futures companies' compliance with regulations in such areas as investor adequacy, corporate governance and internal controls as well as related business compliance, according to the report.
The inspection will cover 24 jurisdictions and 32 futures companies and their branches.
The report noted that the move aims to carry out plans stated in the National Financial Work Conference held last month, which set preventing systemic financial risks as a top priority. The CSRC will proactively maintain the stable order of the futures market and push futures companies to observe standardized operation and sound development, and it will also protect the rights and interests of small and medium-sized investors, the report said.
Business insiders believe the CRSC is taking the initiative to address current regulatory weaknesses, the report noted.
China's futures industry has shown signs of improvement so far in 2017, with 32 companies receiving "AA" ratings, up from 10 in 2016, according to the report.
