Skip to main content

CSRC, PBC and SAFE Release the Measures for the Administration of Domestic Securities and Futures Investment by Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors

 Upon the approval by the State Council, for the purpose of  further opening up China’s capital markets, China Securities Regulatory Commission (CSRC), People’s Bank of China (PBC), and State Administration of Foreign Exchange (SAFE) hereby release the Measures for the Administration of Domestic Securities and Futures Investment by Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors (hereinafter referred to as the Measures) on September, 25th , 2020. The CSRC is simultaneously releasing an implementary rule, Provisions on Issues Concerning the Implementation of the Measures for the Administration of Domestic Securities and Futures Investment by Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors (hereinafter referred to as the Provisions). The Measures and the Provisions shall take effect on November, 1st ,2020.


In accordance with the rule-making procedure, the CSRC has solicited public comments on the draft versions of the Measures and the Provisions. Market participants expressed universal support for the main contents of the Measures and Provisions and recommended expeditious implementation to promote market internationalization and balance the development of existent channels for foreign investment. Some domestic and foreign institutions recommended modifications to further ease foreign access, relax qualification requirements, facilitate investment, expand scope of investment, etc.. After thorough deliberation, comments that were reasonable and practical were incorporated into the finalized versions of Measures and Provisions.


Major revisions to previous QFII and RQFII rules are as follows:
Relaxing qualification requirements and facilitating investment and operations of QFIIs and RQFIIs. The previously separate regimes for QFII and RQFII qualifications and rules are integrated; qualification requirements are relaxed; application documents are streamlined; review cycle is cut short; and a simplified reviewing procedure is applied. The restriction on the number of intermediaries servicing a QFII or RQFII is removed; supervision over the reporting and filing of QFIIs and RQFIIs is improved; and requirements for data submission are reduced.


Gradually expanding investment scope. QFIIs and RQFIIs may invest in additional asset types in the Chinese domestic markets, including securities admitted on the National Equities Exchange and Quotations (NEEQ) market, private investment funds, financial futures, commodity futures, options, etc., and may participate in bond repurchase transactions, margin trading and securities financing on stock exchanges, and securities lending to securities finance company. Financial products including financial derivatives contracts as well as related trading models will be gradually relaxed for QFIIs and RQFIIs access in an orderly manner, which is to be announced by the CSRC upon agreement with the PBC and the SAFE.


Enhancing ongoing supervision. Cross-market surveillance, cross-border supervision and see-through regulation are enhanced. Regulatory enforcement against violations of laws and regulations are strengthened with specified application.
Going forward, the CSRC will stay committed to market liberalization and accelerate the two-way opening-up of Chinese domestic capital markets at a higher level.

The Measures (CSRC Decree No. 176).pdf
The Provisions (CSRC Announcement [2020] No. 63 ).pdf

For China derivatives market access and more market information please contact sherry_ustc@163.com

Labels:

Comments

Post a Comment

Popular posts from this blog

China CSRC Solicits Comments on Draft Trading Server Colocation Rules

  On April 21, 2023, the China Securities Regulatory Commission (“CSRC”) issued the  Administrative Provisions on Trading Server Colocation for the Securities and Futures Markets (Consultation Paper)  (the “Administrative Provisions”). The Administrative Provisions fill a legal gap with respect to securities and futures trading server colocation. It has been common market practice for securities or futures companies to lease cabinets in an exchange or its subsidiary’ data center and sublease it to customers to host their servers, although neither the CSRC nor exchanges have formulated specific regulatory rules on server colocation. The Administrative Provisions are the only administrative departmental rules that directly regulate colocation activities. The promulgation of the Administrative Provisions improves regulations regarding market infrastructures and is conducive to the safe and stable operation of the securities and futures markets. The high-level legal foundations referenced
Post a Comment
Read more

INE:Crude Oil Futures Trade at Settlement (TAS) Order Q&A

  1.       What is TAS? TAS, short for Trade at Settlement, is an order type that allows a trader to buy or sell an eligible futures contract during specified trading hours at the current day’s settlement price or a certain number of ticks of the outright above or below that price. 2.       Why does INE launch TAS orders? TAS order aims to provide an efficient and effective risk management tool in the market which can lower traders’ risk management costs, so as to enhance the proportion of brick-and-mortar enterprise investors and the crude oil price influence. For brick-and-mortar enterprises, the futures settlement price is often used as the benchmark price in spot trading. These enterprises used to place orders frequently to simulate the settlement price, which is difficult to execute as well as inefficient for hedging. TAS orders enable investors to trade at or near the settlement price during specified trading hours, which will greatly reduce the uncertainty
Post a Comment
Read more

INE Notice on the Approval of the Registration of Copper Cathode Brand “MONYWA LPT” of Myanmar Wanbao Mining Copper Limited

  The Shanghai International Energy Exchange (“INE” or the “Exchange”) has recently received the application from Myanmar Wanbao Mining Copper Limited for brand registration. In accordance with rules including the Registration Rules for Deliverable Commodities of Bonded Copper Futures and following its on-site inspection and sample testing, the Exchange determines that the registrant’s “MONYWA LPT”-branded copper cathodes conform to all the specifications of the INE copper cathode futures contract. Accordingly, the Exchange has issued the following decisions: 1. The Exchange approves the registration of “MONYWA LPT”-branded copper cathodes produced by Myanmar Wanbao Mining Copper Limited, with a registered production capacity of 100,000 mt and subject to standard delivery prices; 2. The above products are deliverable against INE copper cathode futures contracts as of the date of this Notice. Product information: Registrant: Myanmar Wanbao Mining Copper Limited Place of Origin: Sarlingy
1 comment
Read more