China's securities regulator on Friday said it will complete preparatory work for the country's first crude oil futures contract in about three months.
The crude oil futures contract will be tradable by foreign investors, the first of its kind in China, said the China Securities Regulatory Commission's spokesperson Zhang Xiaojun at the regulator's weekly news briefing.
The Shanghai Futures Exchange has been approved by the regulator to cover the crude oil futures, said the spokesperson.
Provisional regulations will be enacted on Aug. 1 this year for foreign traders and institutions to trade futures, said Zhang, adding that China will internationalize its futures products step by step.
Zhang also said at the briefing that recent market falls were "a correction of earlier excessive gains."
Over the week, the Shanghai market lost 6.37 percent and the Shenzhen market dropped 8.72 percent.
