CHINA: Foreign investors may get greater access to derivatives market for China foreign investment

Monday December 9 2013

It is being reported that Chinese financial regulators are discussing changes to make China`s derivatives market more attractive for China Foreign Investment, as part of the development plan for the capital market.

Reportedly, China will actively and steadily ease access to the derivatives market for China foreign investment and allow overseas institutions to hold stakes in Chinese companies.

The derivatives market in China is largely closed to overseas investors. Foreign investors trade in China`s capital market mainly through the qualified foreign institutional investor (QFII) scheme with a limited quota.

More derivative products such as crude oil futures, will reportedly be introduced to diversify the market. Equity market regulators will work for specific derivatives legislation to protect market activities.

This information will be updated as further details become available.