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Is it illegal for Dalian Commodity Exchange to speculate in futures?
Not illegal.

At present, the legal securities trading places in China are Shanghai Stock Exchange, Shenzhen Stock Exchange and the national share transfer system for small and medium-sized enterprises, and the legal futures trading places are Dalian Commodity Exchange, Shanghai Futures Exchange, Zhengzhou Commodity Exchange, China Financial Futures Exchange and Shanghai International Energy Trading Center. Investors should invest in securities or futures in the above places.

Investors should invest in securities or futures in legally established stock exchanges and futures exchanges.