Name: Guidelines on Participation by Qualified Foreign Institutional Investors in Stock Index Futures (合格境外机构投资者参与股指期货交易指引)
Issuing authority: China Securities Regulatory Commission ( “CSRC”)
Effective date: 4 May 2011
Subject: QFII, stock index futures
Following consultation, the CSRC has now finalised its guidelines on the trading of stock index futures on the China Financial Futures Exchange (“CFFEx”) by Qualified Foreign Institutional Investors ("QFII"). Whilst the CSRC is understood to have received a number of submissions in response to its January consultation draft, the final version of the guidelines is in substantially the same form as the consultation draft.
Under the guidelines, QFIIs are only permitted to participate in stock index futures for hedging purposes within their approved CFFEx quota, which means that QFIIs will not be permitted to use index futures as a way to issue financial derivative products in offshore markets. QFII trading of stock index futures will also be subject to daily trading limits.
Please refer to our alert dated 31 January 2011 for an overview of the guidelines.
If you would like to discuss anything regarding this Alert please contact Fang Jian (Shanghai), Nicola Mayo (Shanghai), Simon Poh (Shanghai), or Betty Yap (Hong Kong).
