BEIJING (Reuters), – China will support leading futures companies in speeding up their development and encouraging qualified firms to become listed, China Futures Association announced, quoting an official at the securities regulator.

Fang Xinghai – vice chair of China Securities Regulatory Commission – stated that authorities would help futures firms to expand and diversify financing and compete with foreign players. According to the statement.

Fang suggested that futures companies should contribute to China’s security of energy and minerals.

China’s commodities markets were volatile due to uncertainty surrounding the global economy, liquidity, and speculation. For example, metal and coal futures surged to historic highs but plummeted after government intervention.

According to the Association, regulators will support further development of futures-risk management companies as well as the steady expansion of traders groups.

Fang indicated that China’s first futures law will be released in 2022. After considering the matter for several years, Fang believes it will finally become law.

The statement by the association stated that he also confirmed that China would allow foreign traders to take part in its domestic market while increasing price pressure for existing products like iron ore, PTA and steel.