Public funds permitted to trade t-bond futures

The China Securities Regulatory Commission has given conditional approval for public funds to trade treasury bond futures, according to a circular released on its official website on Thursday.

Equity funds, bond funds and hybrid funds may trade t-bond futures under the CSRC guidelines, while money market funds and short-term wealth management bond mutual funds may not.

The guidelines said public funds should follow hedging-oriented strategies for risk controls.

A fund should not buy contracts worth more than 15 percent of their asset value or sell contracts worth more than 30 percent of the total market value of the bond it holds on a trading day, the guidelines said.

Trading of t-bond futures will start on Friday.