The China Securities Regulatory Commission (CSRC) has introduced draft rules that will allow approved foreign investors to trade stock index futures, Reuters reports. As per the proposed rules, Qualified Foreign Institutional Investors (QFII) will only be allowed to trade stock index futures for hedging purposes and it will be counted as part of their existing investment quotas.
CSRC will also let domestic securities brokerage firms buy more products with their own money, a move towards deregulation that could boost incomes of local securities firms. CSRC officially rolled out the QFII system in 2003. It received investment quotas worth $19.7 billion from Beijing in total to 97 foreign institutions by the end of 2010.
Click here for the story from Reuters.