The China Securities Regulatory Commission (CSRC) is expanding the range of investment categories of securities companies’ proprietary business. This comes through the Nov. 19 publication of “The Decision on Revising ‘The Stipulations on Relevant Proceedings of Investment Range of Security Companies’ proprietary business’” (the decision).

The decision expands the range of securities traded in the domestic inter-bank market from being “partially traded” to being “all traded”. The range of securities traded over the counter of financial institutions is also expanded from those only approved by the CSRC to those approved by financial supervisory institutions or their authorized institutions, Those will include banks’ money-managing plans and assembled funds trust into the range of security companies’ proprietary business.

The decision clarifies the supervisory policy of securities companies investing in financial derivatives as well. Securities firms possessing proprietary business qualifications can engage in financial derivatives trading. Securities companies not possessing those qualifications can engage in financial derivatives trading only aimed at hedging risks.