10% limit for foreign investment in futures
By Winny Wang |
July 21, 2010, Wednesday
|
Print Edition
Print Edition
FOREIGN investors may be permitted to invest as much as 10 percent of their investment quotas in China's index futures market for hedging purposes.
China will limit funds under the Qualified Foreign Institutional Investor program, which allows foreign investors to trade yuan-denominated A shares on the Chinese mainland, to invest as much as 10 percent of their investment quotas in index futures, China Securities Journal quoted an unnamed source as saying yesterday.
Their trades must be conducted on hedging purposes and closely linked to the spot market, and the securities regulator is expected to seek public opinion on the issue soon, the source said.
In May, China reached agreements at the second meeting of the United States-China Strategic & Economic Dialogue to allow foreign investors under the QFII scheme to trade stock index futures.
A total of 89 firms got QFII quotas exceeding US$17.72 billion by the end of June, according to the State Administration of Foreign Exchange.
The 10 percent limit is expected to channel 12 billion yuan (US$1.77 billion) into the index futures market and enable QFII investors to hedge risks and compete more effectively with local asset mangers.
The index futures were launched on April 16. Investors bet on the direction of domestic stock markets based on the CSI 300 index.
China will limit funds under the Qualified Foreign Institutional Investor program, which allows foreign investors to trade yuan-denominated A shares on the Chinese mainland, to invest as much as 10 percent of their investment quotas in index futures, China Securities Journal quoted an unnamed source as saying yesterday.
Their trades must be conducted on hedging purposes and closely linked to the spot market, and the securities regulator is expected to seek public opinion on the issue soon, the source said.
In May, China reached agreements at the second meeting of the United States-China Strategic & Economic Dialogue to allow foreign investors under the QFII scheme to trade stock index futures.
A total of 89 firms got QFII quotas exceeding US$17.72 billion by the end of June, according to the State Administration of Foreign Exchange.
The 10 percent limit is expected to channel 12 billion yuan (US$1.77 billion) into the index futures market and enable QFII investors to hedge risks and compete more effectively with local asset mangers.
The index futures were launched on April 16. Investors bet on the direction of domestic stock markets based on the CSI 300 index.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
