CSRC Lists Newly-Added Financial Derivatives Accessible to Qualified Foreign Investors

The China Securities Regulatory Commission (CSRC) announced that it will allow Qualified Foreign Investors to trade more types of onshore derivatives.

Specifically, per the joint deliberations with the People’s Bank of China (PBC) and the State Administration of Foreign Exchange (SAFE), 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.

Broadening the investment scope for Qualified Foreign Investors is an important measure to reform and open up domestic securities. The measure 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.

The commission highlighted that 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 stated.