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Foreign banks may not be allowed to provide custody or settlement services for futures trading in China, the China Business News reported, citing a source close to the matter.

The ban on foreign bank participation is likely to be contained in new rules governing futures operations, the newspaper said.

'The custodian and settlement business falls into the category of futures, and China did not promise to open its futures market to foreigners in its WTO accession,' the source told the paper.

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