China’s chinese markets are booming with investors, and the Chinese government is pushing for a global trading system, which would give them more control over their markets.
However, they’re also facing the threat of a huge bull market, which could mean a crash if they don’t deal with it quickly.
This week, the China Securities Regulatory Commission (CSRC) will decide whether to approve a new market trading system to regulate financial services and exchange platforms.
The market regulator said the new system will help curb financial risk by giving financial institutions more flexibility to manage their markets and by improving the performance of their trading platforms.CSRC Chairman Zhou Yonghua said the system would help the regulator prevent speculative behaviour by making it easier to track trading activity in a market and to provide more predictability in the allocation of liquidity.
The system will also provide greater transparency in the market, including information on the volume of funds traded and the trading volume of the different trading platforms, Zhou said.
The regulator also wants to make it easier for financial institutions to manage risks and improve their liquidity.CSEC also said it is keen to establish a “single regulator for financial services” and to improve financial information in the Chinese financial markets.CSFC said it has been working on this project for the past three years and will submit its proposal for the approval of the new trading system by the end of the year.
The plan is aimed at tackling financial risk and ensuring transparency, the regulator said in a statement.
China is the world’s second-largest economy with a GDP of about $8 trillion and a population of more than 8.4 billion.