CSRC Announced the Category of Financial Derivates for QFII

On October 15, 2021, China Security Regulatory Commission (“CSRC”) announced trade category of financial derivates that QFII and RQFII can participate. Newly increased variety of commodity futures, commodity options and stock index options will be implemented on November 1, 2021.

New commodity futures and commodity options products refer to commodity futures and options currently listed on the Shanghai Futures Exchange, Dalian Commodity Exchange, Zhengzhou Commodity Exchange, and Shanghai International Energy Exchange, Guangzhou Futures Exchange or other exchanges that may be approved by the CSRC in the future. At the same time, the purpose of participating in the trading of stock index options is still limited to hedging transactions, which continues the prudential supervision attitude of the regulators on foreign participation in stock-related financial derivatives.

After cancelling the limitation of investment quota on QFII and RQFII in 2019, reducing the access threshold and expand the scope of investment of QFII and RQFII in 2020, QFII has much convenience to invest in China’s domestic financial market.