China to allow qualified foreign investors to trade on-exchange ETF options

China will allow qualified foreign investors to participate in on-exchange exchange-traded fund (ETF) options trading from Oct. 9 this year for hedging purposes only, the country's top securities regulator said on Wednesday.

The move aims to expand the range of investable assets for qualified foreign investors, and to enable foreign institutional investors -- particularly those focused on portfolio allocation -- to access risk-management tools that align with their investment needs, according to the China Securities Regulatory Commission (CSRC).

It is expected to foster more stable investment by foreign institutional investors, and to support their long-term participation in China's A-share market, the regulator said.

Since the beginning of this year, the CSRC has gradually eased restrictions on qualified foreign investors' access to domestic commodity futures, commodity options and ETF options.

Going forward, the regulator said it will roll out further reform measures to improve the qualified foreign investor scheme, and do more to promote the high-standard institutional opening-up of the country's capital market. ■