CHINA PUTS OFF LAUNCH OF DERIVATIVES

China has delayed the launch of its first futures product due to a lack of regulations and a suitable billing system. The financial derivatives exchange will delay such transactions to the second quarter of 2007 or later.

Beijing authorities have expressed concerned that derivatives may destabilize the local stock markets. Because investors could profit from falling share prices, there is a fear that large institutions may push down share prices. Some also believe that a bias still remains against financial futures as a result of past problems.