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: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

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

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