In April 2026, the China Securities Regulatory Commission (CSRC) issued the Administrative Measures for the Supervision and Administration of Futures Companies (Consultation Paper) (the “New Draft”) and its implementation provisions for public consultation. This revision further refines the draft for consultation issued in 2023 (the “2023 Draft”). It aims to implement the Futures and Derivatives Law and the overall requirements set out by the Central Financial Work Conference regarding strengthening regulation, preventing financial risks, and promoting high-quality financial market development. This New Draft not only represents a technical update of the existing regulatory framework but also signals significant restructuring of the whole futures industry.
Our analysis of the key aspects of the New Draft is set out below.
I. Re-establishment of a Business Classification Management Framework
The New Draft introduces tiered capital requirements for futures companies through a classification of businesses. Different types of businesses are subject to differentiated minimum registered capital and net capital thresholds, which increase progressively with the complexity of business activities. The relevant requirements are summarized as follows:
| Type | Business Scope | Minimum Registered Capital |
| Primary Businesses | Domestic futures brokerage | Not less than RMB 100 million |
| Domestic futures brokerage and futures trading advisory | Not less than RMB 200 million | |
| Trading Related Businesses | Futures market making | Not less than RMB 500 million for one trading business; not less than RMB 1 billion for two or more trading businesses |
| Derivatives trading | ||
| Futures asset management |
With respect to the application for additional business lines, the New Draft requires futures companies to maintain the applicable net capital thresholds over the preceding six months. Specifically, where a company applies to add primary businesses, one trading related business, or two or more trading related businesses, its net capital shall have been no less than RMB 200 million, RMB 500 million, or RMB 1 billion, respectively. Each application may only cover one additional business, and there shall be an interval of no less than six months between successive applications. Additional requirements are also imposed with respect to staffing, track record of continuous operation, etc.
Compared with the 2023 Draft, the New Draft removes references to futures margin financing business and futures proprietary trading and further clarifies that proprietary funds of futures companies shall not be invested in unlisted stocks, equities or non-standard debt assets, thereby strengthening compliance boundaries for the use of proprietary funds.
II. Re-centralisation of Financial Businesses from Subsidiaries to Parent Companies
Consistent with the 2023 Draft, one of the key adjustments under the New Draft is the reallocation of permissible business activities, i.e., both futures market making and derivatives trading businesses, which were previously allowed to operate by the risk management subsidiaries of futures companies under the self-regulatory oversight of the China Futures Association, must be brought under the direct operation of futures companies and be subject to administrative licensing and ongoing regulatory supervision thereof.
In terms of operational requirements, the New Draft requires futures companies to establish dedicated departments for conducting futures market making business, and to ensure strict segregation from other businesses such as futures brokerage, futures trading advisory and futures asset management in terms of the personnel, capital, trading seats and accounting. Although the New Draft does not provide a separate chapter for derivatives trading business, we expect that regulators may require similar segregation and management arrangements for derivatives trading business, but this is still pending further clarification from the regulators.
With respect to transitional arrangements, where futures companies or their domestic subsidiaries had already been conducting relevant businesses prior to the implementation of the New Draft, these companies or their domestic subsidiaries may apply for the relevant business qualifications within twelve months of the effective date without being subject to the restriction that “only one type of business may be applied for each time with an interval of no less than six months”. In addition, a transition period of eighteen months is provided for subsidiaries that have already engaged in such businesses, during which they are required to gradually cease operations of such businesses.
III. Strengthening See-through Supervision of Shareholding and Enhancing Corporate Governance
With respect to corporate governance, the New Draft significantly enhances see-through supervision over shareholders and de facto controllers. Futures companies are required to fully disclose their shareholding structures, including de facto controllers, ultimate beneficial owners, and any affiliated relationship or concerted action arrangements, thereby improving transparency.
In terms of financial requirements, the New Draft raises the thresholds for major shareholders and de facto controllers. The minimum net assets requirement for major shareholders is increased from “not less than RMB 100 million” in the 2023 Draft to “not less than RMB 200 million,” and it is further specified that the largest shareholder, controlling shareholder and de facto controller shall each have net assets of no less than RMB 1 billion.
In addition, the New Draft explicitly prohibits cross-shareholding and circular shareholding arrangements, and continues to adopt the “one participation, one control” principle, limiting the number of futures companies that may be held or controlled by the same entity. Furthermore, by setting out a “negative list” for shareholder conduct, which includes interference with company operations, misappropriation of assets, or exercising management power through informal means, the New Draft aims to mitigate governance risks and safeguard client assets and the independence of company operations.
IV. Further Regulation of Asset Management Business
With respect to asset management business, the New Draft introduces proportional limits and investment restrictions to guide futures companies back to their core derivatives-related functions and to curb “channel business” practices. Specifically, the net scale of funds raised under futures asset management plans established by a futures company shall not exceed five times the net scale of funds raised under its futures and derivatives asset management plans. In addition, such asset management plans are prohibited from investing in unlisted stocks, equities or non-standard debt assets. The New Draft also requires that other types of asset management plans shall reasonably utilize futures or derivatives instruments for risk management purposes, thereby reinforcing the professional role of futures companies in risk hedging and price discovery. These requirements reflect the regulatory intention to enhance the role of futures companies in serving the real economy, rather than purely relying on channel-based business models for revenue generation.
V. Strengthening Supervision of Subsidiaries and Branches
In response to issues such as overly complex multi-level structures and unclear business boundaries of futures company subsidiaries, the New Draft further strengthens supervision over subsidiaries and branches of futures companies. A futures company shall have maintained net capital of no less than RMB 500 million over the preceding six months to establish a domestic subsidiary, and no less than RMB 1 billion to establish an overseas subsidiary. In terms of organizational structure, domestic subsidiaries are prohibited from establishing further subsidiaries, while overseas subsidiaries are, in principle, permitted to only establish one tier of subsidiary beneath it, to prevent excessive layering.
For branch offices, the New Draft imposes ongoing compliance requirements with respect to staffing, business premises, IT systems, and internal control policies, and emphasizes that branches shall not operate beyond their authorized scope, ensuring that their operations remain within a unified regulatory framework.
VI. Impact and Outlook
Overall, the New Draft provides a regulatory foundation for futures companies to expand into market making, derivatives trading and asset management businesses, thereby facilitating business diversification. At the same time, the higher capital thresholds and ongoing regulatory requirements will significantly increase compliance costs and operational pressure on futures companies. At the industry level, as futures companies transition from traditional brokerage-focused models to comprehensive financial service providers, they will need to make sustained investments in research capabilities, product developing and technological infrastructure in order to adapt to a more complex market and regulatory environment.
The CSRC has included the New Draft as a key legislative priority in its 2026 legislative plan, aiming for its promulgation within the year. This New Draft largely reflects the regulator’s intended direction for restructuring the industry, and we expect it will be promulgated shortly following this round of consultation.
We will continue to monitor relevant developments and keep our clients informed.
