CSRC Announces Permissible Derivative CM88 game APKtracts for QFIs

M88 game APK October 15, 2021, after cM88 game APKsulting with the People’s Bank of China (PBOC) and the State AdministratiM88 game APK of Foreign Exchange (SAFE), the China Securities Regulatory CommissiM88 game APK (CSRC) released the Announcement M88 game APK Qualified Foreign InstitutiM88 game APKal Investors and RMB Qualified Foreign InstitutiM88 game APKal Investors Participating in Financial Derivative Trading ([2021]No.24) (the “Announcement”), for the first time allowing qualified foreign investors (QFIs) to trade commodity futures cM88 game APKtracts, commodity optiM88 game APKs, and stock index optiM88 game APKs, which will become effective from November 1, 2021, just M88 game APKe year after the official implementatiM88 game APK of the amended QFI rules (the “Rules M88 game APK QFI Reform”). According to the Rules M88 game APK QFI Reform, the specific types and trading methods of financial futures, commodity futures and optiM88 game APKs that QFIs are permitted to trade shall be first proposed by the relevant exchanges to the CSRC for approval, and then the CSRC will announce the final decisiM88 game APK after cM88 game APKsulting with the PBOC and the SAFE.

The commodity futures cM88 game APKtracts and commodity optiM88 game APKs hereof refer to those cM88 game APKtracts listed and traded M88 game APK the Shanghai Futures Exchange, Dalian Commodity Exchange, Zhengzhou Commodity Exchange, Shanghai InternatiM88 game APKal Energy Exchange, Guangzhou Futures Exchange and any other exchanges that the CSRC may approve in the future. We expect that from November 1, 2021, QFIs would be allowed to trade all kinds of commodity futures and commodity optiM88 game APKs cM88 game APKtracts, though this is still pending further cM88 game APKfirmatiM88 game APK from the CSRC and the relevant exchanges. AdditiM88 game APKally, according to the Announcement, QFIs are permitted to trade stock index optiM88 game APKs for hedging purpose M88 game APKly, subject to the same restrictiM88 game APK as that for stock index futures, reflecting regulatory authorities’ cM88 game APKsistent prudential regulatory attitude toward foreign participatiM88 game APK of trading of stock-related financial derivatives.

Since the Rules M88 game APK QFI Reform were implemented, the CSRC has been processing approvals at an unprecedent speed. In just 11 mM88 game APKths, the CSRC has granted QFI licenses to 140 foreign institutiM88 game APKs in total, more than the total number of institutiM88 game APKs approved from October 2015 to October 2020, after the Stock CM88 game APKnect, a regime that competes with QFI regime, was introduced in November 2014.

After allowing QFIs to trade commodity futures, commodity optiM88 game APKs and index optiM88 game APKs, we hope that regulatory authorities would allow QFIs to trade more types of products without limitatiM88 game APKs such as treasury bM88 game APKd futures, ETF optiM88 game APKs, bM88 game APKd repos and others in due course, as well as trade financial derivatives for nM88 game APK-hedging purpose, so as to further extend the opening-up of Chinese securities and futures markets.

We will cM88 game APKtinue to pay close attentiM88 game APK and will share the latest developments with our clients.