The China Securities Regulatory Commission (CSRC), the national capital market regulator, is considering setting up a fund to protect futures investors.

Yang Maijun, director in charge of CSRC's futures department, said at a forum on futures that the demand for a futures market is becoming increasingly strong in reaction to the interest rates and forex system reforms.

"China's futures market enjoys broad prospects," Yang said. Henoted that the market is on the eve of transformation and improvement.

According to Yang, setting up a fund for protecting investors is one of the three tasks of the futures department. The major aim of the fund is to maintain investors' confidence by compensating losses caused by the vicious deregulation of futures companies.

The second task of the futures department is to establish a supervision system to ensure the security of deposits, Yang said. The system is under trial operation and scheduled to be introduced to the market by the end of this year.

The third task is to build a security index system to signal the net assets of futures broking companies, so as to oversee companies' capital and assess their risk-resisting capacity.

Source: Xinhua