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.