CSRC, PBC and SAFE Release the Measures for the Administration of Domestic Securities and Futures Investment

FangQuant › Policy

CSRC, PBC and SAFE Release the Measures for the Administration of Domestic Securities and Futures Investment

Fang • submitted 2020-09-25 21:04:01

Upon the approval by the State Council, for the purpose of further opening up China’s capital markets, China Securities Regulatory Commission (CSRC), People’s Bank of China (PBC), and State Administration of Foreign Exchange (SAFE) hereby release the Measures for the Administration of Domestic Securities and Futures Investment by Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors (hereinafter referred to as the Measures) on September, 25th , 2020. The CSRC is simultaneously releasing an implementary rule, Provisions on Issues Concerning the Implementation of the Measures for the Administration of Domestic Securities and Futures Investment by Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors (hereinafter referred to as the Provisions). The Measures and the Provisions shall take effect on November, 1st ,2020.

In accordance with the rule-making procedure, the CSRC has solicited public comments on the draft versions of the Measures and the Provisions. Market participants expressed universal support for the main contents of the Measures and Provisions and recommended expeditious implementation to promote market internationalization and balance the development of existent channels for foreign investment. Some domestic and foreign institutions recommended modifications to further ease foreign access, relax qualification requirements, facilitate investment, expand scope of investment, etc.. After thorough deliberation, comments that were reasonable and practical were incorporated into the finalized versions of Measures and Provisions.

Major revisions to previous QFII and RQFII rules are as follows:
Relaxing qualification requirements and facilitating investment and operations of QFIIs and RQFIIs. The previously separate regimes for QFII and RQFII qualifications and rules are integrated; qualification requirements are relaxed; application documents are streamlined; review cycle is cut short; and a simplified reviewing procedure is applied. The restriction on the number of intermediaries servicing a QFII or RQFII is removed; supervision over the reporting and filing of QFIIs and RQFIIs is improved; and requirements for data submission are reduced.

Gradually expanding investment scope. QFIIs and RQFIIs may invest in additional asset types in the Chinese domestic markets, including securities admitted on the National Equities Exchange and Quotations (NEEQ) market, private investment funds, financial futures, commodity futures, options, etc., and may participate in bond repurchase transactions, margin trading and securities financing on stock exchanges, and securities lending to securities finance company. Financial products including financial derivatives contracts as well as related trading models will be gradually relaxed for QFIIs and RQFIIs access in an orderly manner, which is to be announced by the CSRC upon agreement with the PBC and the SAFE.

Enhancing ongoing supervision. Cross-market surveillance, cross-border supervision and see-through regulation are enhanced. Regulatory enforcement against violations of laws and regulations are strengthened with specified application.

Going forward, the CSRC will stay committed to market liberalization and accelerate the two-way opening-up of Chinese domestic capital markets at a higher level.

http://www.csrc.gov.cn/pub/csrc_en/newsfacts/release/202009/t20200925_383652.html

Disclaimer: The information on this website is for general informational purposes only and is not intended as a recommendation or an offer or solicitation for the purchase or sale of any security, currency, investment, service or to attract any funds or deposits. Save to the extent provided otherwise in the Terms and Conditions for Accounts and Services or other applicable terms and conditions, information in this website has been prepared without taking account of the objectives, financial situation or needs of any particular investor. Therefore, investment products mentioned in this website may not be suitable for all investors. Any person considering an investment should seek independent advice on the suitability or otherwise of a particular investment. Before making any investment, each investor must obtain the investment offering materials, which include a description of the risks, fees and expenses and the performance history, if any, which may be considered in connection with making an investment decision. Each investor should carefully consider the risks associated with the investment and make a determination based upon the investor’s own particular circumstances, that the investment is consistent with the investor’s investment objectives.

Currently no Comments.

author: Fang

Hot Topics

The 13rd China International Future Forum Financial institutions deep explore commodity market opportunities, commodity index financial products show full-scale trend The Shanghai Derivatives Energy Forum has received extensive attention from relevant industries both within and outside the borders. New indicator to analyze the arbitrage opportunities between sse50 and csi500 The Great China Bubble: Anniversary Lessons and Outlook Market review: January 11, 2017 R-Code for analysis: getKDJ The hedge strategy between SSE50 and A50--Jan 13,2017 The arbitraging strategy between CSI300 and SSE50 R-Code@June 06, 2016 MSCI Rebuffs Chinese Equities for Third Time in Blow to Xi Sleepless in London--Enda Homan(Allied Irish Banks Plc) Quant Investment in China A-share market Soros, Druckenmiller among hedgies profiting in market plunge Market review: June 17, 2016

Links

Contact Me: sherry_ustc@163.com