Three foreign banks could trade Chinese government bond futures

Will join 24 domestic banks in new bond program.

The China Banking Regulatory Commission, the banking regulator, named the three foreign banks as HSBC Holdings, Citibank NA and Standard Chartered, all of which have been active in China's markets since the 1990s

The new government bond futures pilot program expected to be launched in September and form part of China’s wider financial reforms, China has said it will re-launch trading in government bond futures in the Shanghai-based China Financial Futures Exchange after an 18-year ban, starting with a five-year contract.

Chinese commercial banks that will be allowed to trade include the Big Four state-owned banks: Industrial and Commercial Bank of China , China Construction Bank, Agricultural Bank of China and Bank of China.

More banks will be allowed to participate if initial trading proves a success and the market operates smoothly, said analysts.