China To Allow Next QFII Investment To Trade Stock Index Futures

MarketCall.net -- May 07, 2011


BEIJING, -- China's securities watchdog has published draft rules that will 
allow approved foreign investors to trade stock index futures, the first step 
in opening up its local securities market. 

But the Qualified Foreign Institutional Investors (QFII) will only be allowed 
to trade stock index futures for hedging purposes, and it will be counted as 
part of their existing investment quotas, according to the proposed rules 
published by the China Securities Regulatory Commission (CSRC) late on Friday. 

China officially launched the QFII system in 2003, and Beijing had granted 
investment quotas worth $19.7 billion in total to 97 foreign institutions by 
the end of 2010 -- only a tiny proportion of China's 20 trillion yuan stock 
market. 

CSRC has also decided to allow domestic securities brokerage firms to buy more 
products with their own money, a move towards deregulation that could 
potentially boost incomes of local securities firms.


Source : http://www.marketcall.net/




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