CITIC Securities Co said yesterday that it plans to invest an additional 50 million yuan (US$7.18 million) in its futures subsidiary as it aims to enhance its position in the financial derivative business.

The country's biggest listed broker said that CITICS Futures Co will have a registered capital of 150 million yuan after the capital injection, according to a statement to the Shanghai Stock Exchange.

CITICS Futures was restructured from Shenzhen King Bull Futures Co which CITIC Securities bought in April 2007 for 33.24 million yuan. The futures broker has outlets in Shanghai and in Dalian, Zhengzhou and Qingdao.

''Capital is important as brokers prepare for the upcoming trading of stock-index futures and other financial derivatives,'' said Wu Ke, a Zhongtian Investment Consulting Co analyst. ''CITIC Securities hopes to lead its rivals in the field.''

The first stock-index futures contracts in the country are set to be launched later this year after more than two years of preparations. CITICS Futures has brokerage and settlement licenses to trade financial futures.

Industry sources said CITICS Futures has invested more than 10 million yuan in a new settlement system.

Industry data showed brokerages have injected more than 3 billion yuan of capital into their futures units since the start of 2007. The total registered capital of 165 Chinese futures firms was 11.18 billion yuan as of March 31.

(Shanghai Daily May 22,. 2008)