Skip to main content

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.


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

For more China derivatives market news please visit FangQuant



Comments

Popular posts from this blog

INE:Approval of Dalian PetroChina International Warehousing & Transportation Co., Ltd. to Increase Active Storage Capacity for Crude Oil Futures

 Shanghai International Energy Exchange has released its Notice on the Approval of Dalian PetroChina International Warehousing & Transportation Co., Ltd. to Increase Active Storage Capacity for Crude Oil Futures as follows: This is to acknowledge our receipt of the application of Dalian PetroChina International Warehousing & Transportation Co., Ltd. to increase the active storage capacity for crude oil futures. In accordance with the Delivery Rules of the Shanghai International Energy Exchange and other applicable rules, we hereby issue the following response based on inspection and review results: We approve the approved storage capacity of Dalian PetroChina International Warehousing & Transportation Co., Ltd. International Oil Storage located on No.31 New Port Nei Hai Nian Road, Dalian Bonded Area, Liaoning Province, to be increased from 1,200,000m3 to 1,800,000 m3, and the active an storage capacity to be increased from 1,200,000m3 to 1,800,000 m3. ...

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 foundatio...

A Brief Introduction to the Status of China's Commodity Futures Market

  1. Development of China's Commodity Futures Market   Since 2010, the Chinese futures market had fast expanded with the launch of financial futures and Exchange-traded options. The derivatives market has entered a stage of comprehensive development from commodity futures to financial futures, from futures to options, from exchange-listed to OTC, and from domestic-investors-only to liberalized foreign investor trading.   Currently, China’s domestically listed futures and options cover 7 categories of finance, industrial metals, precious metals, chemicals, energy, black series and agricultural products, with a total of 91 varieties, including 64 commodity futures and 20 commodity futures options. Figure 1 Commodity Futures and Options in China Source: Galaxy Futures 2.    Commodity Futures Market 2.1 Market expansion In terms of time, China's commodity futures market has continued to expand steadily, and trading volume, open interest and trading v...