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QFII Training Summary

Fang submitted 2016-11-14 18:11:06

QFII Training Summary

DATE: 2016/11/12-13


- Training Sessions regarding Policies on Domestic Securities Investment by Foreign Institutional Investors

- SAFE : Capital Account Department
- CSRC: Institutions supervision department
- PBOC: Financial Market Division

Overview of the meeting’s second issue (about new products)
1. CSRC is amending QFII trading rules, mulling to cancel QFII trading index futures guideline, which was published in 2011. especially mulling to delete item "QFII holding index futures contract value cannot exceed its investment quota". with keeping hedging purpose no change, next step is to increase investment scope, like treasury bond futures, commodity futures, stock OTC board/new third board and options, among which allowing QFII to trade bond futures with hedging purpose is accepted by management of regulators.

2. cash equity market MOC orders: CSRC found out usage of MOC are significantly deceased. although it is widely used in oversea markets, according to Chinese regulation, MOC orders are limited to use.

3. Program trading, basket order and frequent cancels: The large amount of placing and cancelling orders is one of the most important indicators for Exchange and CSRC to identify abnormal trading. for stock basket order, it will be considered as abnormal trading if QFII place large percentage of both buy and sell orders. Exchanges tighten the regulation on abnormal trading.

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