Two Sessions Photo:Xinhua

China is close to issuing a futures and derivatives law, which will play an active role in the construction of China’s capital and futures market and help the real economy to prevent risks, said Jiang Yang, former vice chairman of the China Securities Regulatory Commission (CSRC) and a member of the 13th National Committee of the Chinese People’s Political Consultative Conference (CPPCC), the country's top political advisory body.

It is expected the draft law will be introduced for a third reading at the Standing Committee of the National People’s Congress this year, according to Jiang who has participated in the formulation of the draft law.

The draft futures and derivatives law went through two readings at the Standing Committee of the National People’s Congress in 2021 and there have been many consultations, Jiang said. 

Jiang also said in another interview during the ongoing two sessions that the Chinese capital market is ready for overall adoption of a registration-based IPO mechanism. The mechanism should serve as a major driver of deepened reform in the capital market. 

China’s annual government work report delivered during the two sessions this year has proposed the adoption of a registration-based IPO mechanism.