China's Bold Move: QFIIs to Trade Onshore ETF Options
Starting October 9, Qualified Foreign Institutional Investors can trade onshore ETF options in China for hedging, enhancing the allure of China's capital markets. This initiative aims to attract long-term foreign capital by boosting risk management tools and fostering market stability, particularly benefiting E Fund's ETF products.
- Country:
- China
China is set to further open its capital markets by allowing Qualified Foreign Institutional Investors (QFIIs) to trade onshore ETF options for hedging purposes, commencing on October 9. This decision by the China Securities Regulatory Commission represents a significant stride toward integrating China's capital markets with global financial systems.
The inclusion of ETF options among risk management tools is anticipated to attract long-term foreign capital investments in China's A-share market. Prominent products like the E Fund STAR 50 ETF and the E Fund ChiNext ETF, managed by China's top mutual fund manager, E Fund, are poised to benefit from this policy change.
Data indicates a growing confidence among foreign investors as cross-border capital inflows surged by US$ 33 billion in May 2025. E Fund has strategically positioned itself as a preeminent partner for foreign investors, witnessing substantial growth in ETF assets and net inflows since early 2024.
(With inputs from agencies.)
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