China Plans No Big Futures Market Overhaul, CSRC Says After Bloomberg Report
Tang Shihua
/SOURCE : yicai
China Plans No Big Futures Market Overhaul, CSRC Says After Bloomberg Report

(Yicai Global) Aug. 9 -- China's securities regulator said it has no plans to greatly ease controls on foreign investment in stock market index futures at the moment following a Bloomberg News report that claimed the country "is mulling the biggest changes to its futures market since 2015."

The report is "baseless," the China Securities Regulatory Commission said on its website yesterday.

The changes being discussed by Chinese policy makers "would give global investors unprecedented access, make it easier to execute bearish trades, and lay the groundwork for wagers on stock-market volatility," Bloomberg said, citing unidentified people familiar with the matter.

The CSRC will support the introduction of new futures products and make them available to overseas investors, the watchdog added, to improve market operation and better serve the real economy, rather than lure more foreign capital.

China opened crude oil, iron ore and pure terephthalic acid futures to overseas investors last year. Trading of TSR 20 rubber futures, also open to global investors, will begin on Aug. 12.

Only Qualified Foreign Institutional Investors are allowed to trade in Chinese futures and their participation is restricted to hedging activities. QFIIs are overseas institutional investors that meet specified standards. They are allowed to exchange a set amount of foreign funds into yuan to invest in the local stock market through special accounts and under strict supervision.

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Keywords: Stock Future , Foreign Investor , Government Policy , CSRC