Qualified foreign institutional investors (QFII) are likely to be permitted to participate in China's upcoming Hushen 300 stock index futures (SIF) trading. A draft regulation about QFII access to the stock index futures was recently unveiled to solicit opinions.   

 

An insider told China Business News that the draft regulation sets strict requirements for QFIIs' access and it is mainly through hedging that they could take part in SIF trading. The draft also says the amount QFII are allowed to access SIF will be limited to about 10 percent of the QFII quota, about US$1 billion based on the current QFII quotas.

 

For more details, please read the full story in Chinese. ( http://www.china-cbn.com/s/n/000002/20070816/000000076028.shtml)

(China.org.cn August 16 2007)