Decree of the State Council of the People's Republic of China
No.489

"Administrative Regulations on Futures Trading"has been approved on the 168th meeting of the State Council on February 7, 2007. It is now promulgated and shall come into effect as of April 15, 2007.

Wen Jiabao, Prime Minister
March 6, 2007

Administrative Regulations on Futures Trading

Chapter 1: General Provisions

Article 1: These Regulations are formulated for the purpose of regularizing the futures trading behavior, strengthening the supervision and management on futures trading, maintaining the order of futures market, avoiding risks, safeguarding legitimate rights and interests of the parties involved in futures trading and the public interest of the society, and promoting positive and stable development of the futures market.

Article 2: Units and individuals engaged in futures trading shall observe these Regulations, including the dealing in commodity/financial futures contract, option contract and other related activities.

Article 3: The principles of open, just, fair, honest and good faith shall be followed in carrying out the futures trading activities. Such illegal acts as fraud, insider dealing and futures trading manipulation shall be prohibited.

Article 4: Futures trading shall be carried out at futures exchanges established according to the law or other trading agencies approved by futures regulatory agency of the State Council.
Futures trading carried out at places other than future exchanges approved by futures regulatory agency of the State Council, as well as futures trading acts in disguised form, shall be prohibited.