QFIIs trading on stock index futures
June 01, 2011 | BY
clpstaff &clp articlesA new law opens up participation in the stock derivative market to qualified foreign institutional investors. However, as landmark as this rule may be, it remains fairly restrictive as regulators cautiously develop the market and seek to manage risks
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On May 4 2011, the China Securities Regulatory Commission (CSRC) issued the Guidelines for the Participation in Stock Index Futures Trading by Qualified Foreign Institutional Investors (合格境外机构投资者参与股指期货交易指引) (the Guidelines) which came into force on the same day. The Guidelines allow Qualified Foreign Institutional Investors (QFIIs) to trade onshore stock index futures (SIFs) on the China Financial Futures Exchange (CFFex), which marked a milestone of the opening of the stock derivative market to foreign institutional investors.