Trading in treasury bond futures in China will resume after 18 years, a move that experts said will spur interest rate liberalization and deepen reforms of the nation's financial markets.

The China Securities Regulatory Commission announced on Friday that, with the State Council approval, it had authorized the Shanghai-based China Financial Futures Exchange to conduct transactions in T-bond futures.

The CSRC said it will coordinate preparations for the new contract, including the announcement of the investor eligibility system, the entry policies for financial institutions, the mechanism for opening bond settlement accounts and the examination and approval of the new contract.