China Securities Regulatory Commission, Guidelines for the Participation in Stock Index Futures Trading by Qualified Foreign Institutional Investors

中国证券监督管理委员会合格境外机构投资者参与股指期货交易指引

June 01, 2011 | BY

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QFIIs may trade stock index futures only for hedging purposes.

Clp Reference: 3700/11.05.04 Promulgated: 2011-05-04 Effective: 2011-05-04

Promulgated: May 4 2011
Effective: as of date of promulgation

Applicability: For the purposes of these Guidelines, the term “stock index futures” means financial futures contracts, the subject matter of which is a stock price index, that are approved by the China Securities Regulatory Commission (the CSRC) and that are listed and traded on the China Financial Futures Exchange (the CFFEx) (Article 2).

Main contents: Qualified foreign institutional investors (QFIIs) that participate in stock index futures trading may only engage in hedging transactions (Article 3).

When a QFII participates in stock index futures trading, it shall comply with the following requirements, unless otherwise specified by the CSRC:

(1) at the end of any trading day, the value of the stock index futures contracts held by it may not exceed its investment limit; and

(2) during any trading day, its transacted amount of stock index futures (excluding the closing of positions) may not exceed its investment limit (Article 4).

Related legislation: Measures for the Administration of Securities Investments in China by Qualified Foreign Institutional Investors, Aug 24 2006, CLP 2006 No.9 p.28; and Provisions on Foreign Exchange Control in Connection with Securities Investments in China by Qualified Foreign Institutional Investors (Revised)

clp reference:3700/11.05.04prc reference:证监会公告 [2011] 12号promulgated:2011-05-04effective:2011-05-04

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