SHENZHEN -- China's securities regulator said Saturday that the country will ease or lift foreign investment restrictions in its futures market.

Foreign businesses will be allowed to own up to 51 percent of shares in futures companies, and the cap will be phased out over three years, Fang Xinghai, deputy head of China Securities Regulatory Commission, said at the 13th China (Shenzhen) International Derivatives Forum.

An efficient futures market will play a key role in stabilizing and improving enterprises' performance, and industrial upgrading, Fang said.

China has been developing its commodity derivatives market and plans to gradually open it up to foreign investors.

In April, the country launched white sugar options, the second commodity options after soybean meal. In August, cotton yarn futures were traded on the Zhengzhou Commodity Exchange.

Futures contracts obligate investors to buy or sell underlying assets at a predetermined price at a specified time, helping investors mitigate risks of price volatilities.