Index-based futures postponed
A China Securities Regulatory Commission (CSRC) official told the Oriental Morning Post the issuing of the first ten futures trading licenses could be postponed until after June, and perhaps even until early next year. The official said the first 10 licenses would be granted to futures firms closely related to large domestic securities firms, including Guotai Junan, CITIC, Haitong and China International Capital Corp. The rest would be granted to large commodity futures companies, but the CSRC was not willing to confirm the names of the companies.

Insurance premiums to boost markets: NDRC
A National Development and Reform Commission (NDRC) report released Tuesday said domestic capital markets would be boosted over the next five years by insurance firms becoming institutional investors and reinvesting insurance premiums, the Securities Times reported. The report, which looked at the short-term future for the country’s financial sector, outlined five key goals for financial reforms during the current Five Year Plan: greater responsiveness to macroeconomic controls, financial institution reform, accelerated financial sector development, better financial sector monitoring, and the establishment of a comprehensive financial infrastructure, including payment clearance and credit reporting systems.

China Post eyes insurance
China Post Group (CPG) has applied to open an insurance firm and is currently under regulatory examination, China Insurance Regulatory Commission (CIRC) chairman Wu Dingfu told the China Business News. Wu said the insurer would be formed by CPG and its subsidiaries and use Japan’s microinsurance business as a model. CPG was formed from former state post bureau assets and other state-owned assets last August with US$10.32 billion (RMB80 billion) in registered capital. Its businesses range from domestic and international post services to forex and savings services. It is also authorized to establish an investment firm, and has been an important channel for insurance products. Official statistics show 25 million customers bought insurance products through postal savings in 2006, accounting for one fifth of total insurance premiums. A CIRC report released Tuesday said 13.84% of first quarter 2007 insurance premiums came through the postal channel, second only to banks.

China Mobile new policy may hurt WAP sites
As China Mobile finalizes an overhaul of its WAP network, industry concerns are growing that a new charging policy based on traffic could hurt independent content providers, Guangzhou Daily reported. A WAP manager who asked not to be named said that, in addition to traffic restraints, a new policy requiring users to first visit China Mobile’s own WAP site could reduce traffic to independent sites. However, Moabc.com president Lai Yilong said China Mobile hoped to increase its digital business revenues to 30-40% of its total, meaning it could have to cooperate with independent WAP sites to satisfy user demand for content. China Mobile announced an Internet strategy last month that placed developing its internet business and controlling the market at the center of the company’s business strategy this year.