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China CSRC announced financial derivatives accessible to Qualified Foreign Investors

  Per the joint deliberations with the People’s Bank of China (PBC), the State Administration of Foreign Exchange (SAFE), the CSRC announced that, starting from November 1, 2021, commodity futures, commodity options, and stock index options will be added as eligible financial derivatives accessible to Qualified Foreign Investors, of which tradings in stock index options shall be limited for the sole purpose of hedging.

  As an important measure to reform and open up domestic securities and futures market, broadening the investment scope for Qualified Foreign Investors will enable more efficient management of asset allocation and risk exposure, raising the attractiveness and global outreach of China’s capital markets to international investors. After years of steady development, the three classes of financial derivatives included in the upcoming addition have served their roles as effective financial instruments and established solid grounds to engage foreign traders.

  Guided by the goal of further opening up China’s capital markets, the CSRC will work with the PBC and the SAFE to closely monitor market dynamics and continually assess a proper timeline of opening more asset classes to foreign investors.


 CSRC Announcement on tradings by Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors in financial derivatives

  [2021] No.24

  October 13, 2021

  This CSRC announcement is made as per the joint deliberations with the People’s Bank of China (PBC) and the State Administration of Foreign Exchange (SAFE) on matters concerning tradings by Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors (jointly as Qualified Foreign Investors) in financial derivatives, in accordance with the Measures for the Administration of Domestic Securities and Futures Investment by Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors (CSRC Decree No. 176), as follow:

  Starting from November 1, 2021, Qualified Foreign Investors will be eligible to trade commodity futures, commodity options and stock index options listed and traded on futures trading venues approved by the State Council or the CSRC. Tradings in stock index options shall be limited for the sole purpose of hedging.


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