CSRC announced financial derivatives

This CSRC announcement is made as per the joint deliberations with the People’s Bank of China (PBC) and the State Administration of Foreign Exchange (SAFE) on matters concerning trading by Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors (jointly as Qualified Foreign Investors) in financial derivatives, in accordance with the Measures for the Administration of Domestic Securities and Futures Investment by Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors (CSRC Decree No. 176), as follow:

Starting from November 1, 2021, Qualified Foreign Investors will be eligible to trade commodity futures, commodity options and stock index options listed and traded on futures trading venues approved by the State Council or the CSRC. Trading in stock index options shall be limited for the sole purpose of hedging.

As of the end of September 2021, 70 futures (64commodity+6 financial futures) are listed, covering agricultural products, metals, energy, chemicals, finance and other major fields of the national economy.

From the perspective of exchange; 20 products were listed in SHFE&INE; 21 products were listed in DCE; 23 products were listed in ZCE while 6 products in CFFEX.

Currently, there are 4 International varieties (Crude oil, TSR20 rubber, Low Sulfur Fuel Oil and Bonded copper) listed in Shanghai Futures Exchange. 2 international varieties (Iron ORE and Palm Oil) listed in Dalian Commodity Exchange and 1 international variety(PTA) listed in Zhengzhou Commodity Exchange.

International varieties mean that overseas investors can join futures trading of those product directly (through intermediaries or trading as special participants).

From the perspective of options. A total of 20 different types of commodity options as well as 4 financial options have been listed by 15th Oct 2021. 5 available commodity options (CU,RU,AU,AL and ZN) were listed in SHFE while 8 available commodity options (M,C,I,PG,V,L,P and PP) in the DCE and 6 available commodity options (SR,CF, TA MA,RM and ZC) in the Zhenzhou Exchange. In addition, Crude oil options (SC) were listed in INE. For financial options, Huatai – Pinebridge CSI 300 ETF options and China AMC SSE 50 ETF options were listed in Shanghai Stock Exchange. CSI 300 Index ETF options and CSI 300 Index options were listed in the Shenzhen Stock Exchange and the CFFEX respectively.