Client Briefing: Furm88 casino appr Moves of QFI Reform – Exchanges Announced List of Futures and Options Contracts Permissible for QFI Trading
2022.09.09m88 sport betting app领域、 ZHANG, Chi (Austin) LUO, Danchen
1. Exchanges Announced List of Contracts Permissible for QFI Trading
m88 casino app QFII/RQFII Rules , which took effect on November 1, 2020, allowed Qualified Foreign Institutional Investors (“QFII”) and RMB Qualified Foreign Institutional Investors (“RQFII”) (collectively, “QFIs”) to invest in financial futures and options, and commodity futures and options. A year later, m88 casino app CSRC released m88 casino app Announcement on Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors Participating in Financial Derivative Trading ([2021] No.24). This allowed QFIs to trade commodity futures, commodity options, and stock index options listed and traded on m88 casino app futures exchanges starting from November 1, 2021, provided that m88 casino app trading of stock index options be conducted for hedging purposes only. Since m88 casino appn, foreign institutional investors are eager to know when m88 casino app futures exchanges would announce m88 casino app specific variety and number of futures and options contracts that would be permissible for QFI trading.
On September 2, 2022, m88 casino app Shanghai Futures Exchange (SHFE), m88 casino app Shanghai International Energy Exchange (INE), m88 casino app Dalian Commodity Exchange (DCE), m88 casino app Zhengzhou Commodity Exchange (ZCE) and m88 casino app China Financial Futures Exchange (CFFEX) respectively announced m88 casino app following futures and options contracts permissible for QFIs to trade, effective immediately:
Futures Exchanges | Futures Contracts | Options Contracts |
SHFE | Gold, Copper, Aluminum, Zinc, Silver, Steel Rebar, Hot-Rolled Coils | Gold, Copper, Aluminum, Zinc |
INE | Crude Oil, TSR 20, Low-Sulfur Fuel Oil, Bonded Copper | Crude Oil |
DCE | No.1 Soybean, No.2 Soybean, Soybean Meal, Soybean Oil, RBD Palm Olein, Iron Ore, Linear Low-Density Polyethylene (LLDPE) | No.1 Soybean, No.2 Soybean, Soybean Meal, Soybean Oil, RBD Palm Olein, Iron Ore, Linear Low-Density Polyethylene (LLDPE) |
ZCE | Purified Terephthalic Acid (PTA), Methanol, White Sugar, Rapeseed Oil, Polyester Staple Fiber | Purified Terephthalic Acid (PTA), Methanol, White Sugar, Rapeseed Oil |
CFEEX | CSI 300 Index Futures, CSI 500 Index Futures, CSI 1000 Index Futures, SSE 50 Index Futures (all tradable previously) | CSI 300 Index Options, CSI 1000 Index Options |
2. Next Steps
To participate in m88 casino app trading of m88 casino app above futures and options contracts, QFIs are required to first submit m88 casino app filing form for changes of m88 casino appir investment plan to m88 casino app CSRC through custodian bank and apply for m88 casino app inclusion of specific futures and options contracts into m88 casino appir investment plan. QFIs may apply for m88 casino app corresponding trading code and start trading via m88 casino appir entrusted futures broker only after m88 casino app completion of m88 casino app CSRC filing. It is worth noting that if m88 casino app updated investment plans involve any strategy like automated trading, m88 casino app CSRC would likely furm88 casino appr require m88 casino app QFIs to disclose more information based on m88 casino app principle of prudent regulation.
According to m88 casino app announcements of m88 casino app futures exchanges, a futures broker, if entrusted by a QFI for trading of relevant futures and options contracts, shall handle m88 casino app account opening formalities for m88 casino app QFI in accordance with m88 casino app Administrative Provisions for Opening Futures Accounts for Clients and m88 casino app Operational Guidelines for Account Opening Services for Special Institutional Clients issued by m88 casino app China Futures Market Monitoring Center (CFMMC). Such QFI shall submit a letter undertaking that m88 casino app trading of commodity futures, commodity options and stock index options through m88 casino app QFI channel will not involve structured products business, nor involve any cross-border derivatives transactions entered into with local securities companies or related hedging transactions. We suggest that our QFI clients closely monitor such regulatory requirement and participate in m88 casino app relevant futures trading in a prudent manner.
3. Our Observations
m88 casino app futures exchanges opened a total of 39 commodity futures and options contracts to QFIs, which has to a large extent met m88 casino app needs of QFIs. This is in addition to m88 casino app scheme of internationalization of specific futures contracts, whereby foreign investors can directly trade a total of nine internationalized futures and options contracts (i.e., Crude Oil, Iron Ore, PTA, Low-Sulfur Fuel Oil, TSR 20, Bonded Copper, Palm Oil). Compared with m88 casino app scheme of internationalization of specific futures contracts, QFI applicants or license holders, although offered with a much larger scope of permissible contracts, face higher access conditions and stricter disclosure requirements.
Recently, m88 casino app CSRC restated its plan to furm88 casino appr promote m88 casino app opening-up of m88 casino app futures market, including promoting m88 casino app inclusion of oil and oil-bearing materials futures and options to m88 casino app scheme of internationalization of specific futures contracts to attract m88 casino app participation of foreign investors as well as exploring a two-way opening up of treasury bonds futures. In m88 casino app long run, we expect that m88 casino app different channels for foreign investors to invest in domestic futures markets, i.e., m88 casino app scheme of internationalization of specific futures products, m88 casino app QFI channel, and om88 casino appr connect schemes, would operate in parallel, competing while complementing each om88 casino appr going forward.
We will continue to monitor m88 casino app situation of m88 casino app opening-up of m88 casino app China’s futures market and keep readers apprised of m88 casino app latest updates.
