China Daily recently republished a report on the State Council’s decision to straighten out the financial and market exchanges that facilitate trade activities in stocks, futures, and other financial products without official approval. The State Council’s decision was distributed in the form of an official document which sets the goal of this campaign as the reduction of national financial risks. It was estimated that hundreds of such exchanges will be impacted or completely closed. In the “decision,” all financial institutes with the word “exchange” in the name will need the central government’s approval or at least government approval at the provincial level. In the past few years, more than 300 exchanges have been established across China, doing business in a number of categories such as precious metals and agricultural products. The government has not established laws to regulate these facilities, so no administrative procedures have been put in place to monitor them.
Source: China Daily, November 26, 2011