BEIJING -- China's securities regulator has approved an application for an initial public offering (IPO) by Chinese broker Nanhua Futures.

Nanhua Futures Co Ltd. will be the first futures firm in China to be listed on the A-share market.

The company applied to issue up to 70 million shares on the Shanghai Stock Exchange, according to the company's prospectus filed with the China Securities Regulatory Commission (CSRC).

Nanhua Futures reported a total operating income of 2.04 billion yuan (about $296.7 million) in 2017, up 163 percent year on year, while its net profit stood at 194 million yuan, rising for the third consecutive year, the filing showed.

The securities regulator has stepped up policy support for the futures sector recently, as the domestic futures market continued to expand.

"Listing of eligible futures companies on the A-share market should be advanced, so as to enhance the overall strength of institutions and foster important force for the industry," said Fang Xinghai, vice chairman of the CSRC.

The total transaction value of the futures market was 210.82 trillion yuan in 2018, up 12.2 percent year on year, data from the China Futures Association showed.