Qualified Foreign Investors Allowed to Trade in Greater Range of Financial Derivatives by CSRC

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Starting from November qualified foreign investors in China will be permitted to trade in a greater range of financial derivatives, as part of ongoing efforts to further open up the domestic capital market.

Starting from 1 November qualified foreign investors will be permitted to trade in open commodities futures, commodities options and stock index options, according to an announcement made by the China Securities Regulatory Commission (CSRC) on 15 October.

According to CSRC participation in the trading of stock index futures options will be restricted to transactions for hedging purposes.

“Expansion of the investment scope for qualified foreign investors is a major measure for implementation of onshore market system reforms, and further expanding the openness of the domestic securities futures market,” said CSRC.

“It will provide more risk avoidance products and allocation tools to offshore investors, help to attract more offshore capital, and raise the international influence of the domestic capital markets.”

CSRC said that in future it would work with the Chinese central bank and the State Administration of Foreign Exchange to drive the opening up of even more products when appropriate, and “firmly and unwaveringly deepen external opening of capital markets.”

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