Chinese authorities to restrict SOEs’ commodity trading – report

>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<

The Chinese government has sought the views of some of the country’s top state-owned enterprises in the energy, metals and food industries on new regulations aimed at preventing fraud and curbing financial activities that officials see as wasteful, Bloomberg News reported, citing people familiar with the matter.

The central government-administered SOEs will be banned from trading commodities that are unrelated to their core business or that carry empty orders, the report said. 

The authorities also plan ban so-called closed-loop trading, in which related entities trade with each other and book profits more than once on the same shipment, per the report.