As China prepares to open up its banking sector by 2007 in accordance with its World Trade Organisation accession terms, the country is increasingly becoming a major focus for banks, exchanges and others in the derivatives industry. Although the date is still far off, and while there is a good degree of scepticism about the extent to which the country is committed to the programme, the sheer potential of the market has meant that banks are already gearing up for the occasion.
In February this year, the derivatives industry became the focus of attention, when the China Banking Regulatory Commission (CBRC) introduced the first set of rules governing banks’ and other financial institutions’ derivatives activities. The new rules purported to clear up previous ambiguities and give regulatory certainty for those wishing to conduct derivatives business in the country.
