CHINA: China QFIIs Permitted to Open Accounts in Index Futures Market for China foreign investment

Monday January 28 2013

It has been reported that the China Financial Futures Exchange (CFFEX) has approved certain foreign investors under the Qualified Foreign Institutional Investor (QFII) scheme to open accounts in China`s share price index futures market for China foreign investment.

As yet, CFFEX has not published details on the first group of qualified foreign investors.

It is thought that opening the index futures market will help foreign investors hedge risks in complicated portfolios, and in the long run add liquidity to China`s index futures market.

However, in accordance with current regulations and quota limits for trading, QFIIs are only permitted to take part in hedging and cannot speculate when trading.

This information will be updated when more details become available.