China to resume treasury futures trading after 18-year halt

China will resume trade of treasury bond futures from September 6.

Trading was suspended in 1995 following a series of irregularities.

The Securities Regulatory Commission said on Friday that it had approved trading of new futures contracts on 5-year treasury bonds at the financial futures exchange.

A minimum security deposit was set at two percent of contract value, and contracts will only allowed to fluctuate within a two-percent ceiling and two-percent floor each trading day.

The financial futures exchange said the trading rules were made afteradequate consultation, and market participants have given the rules their approval.

The futures exchange said it would impose high standards, ensure a stable start and complete preparations in an orderly manner.