Qualified Foreign Institutional Investors (QFIIs) will be permitted to trade onshore exchange-traded fund options from October 9, according to the China Securities Regulatory Commission (CSRC).
The trading of onshore ETF options will be solely for hedging purposes, the regulator says in a statement on June 26.
CSRC says 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.
It adds that the move is expected to foster more stable investment by foreign institutional investors, and support their long-term participation in China’s A-share market.
Going forward, the regulator says 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.
Since the beginning of 2025, the CSRC has gradually eased restrictions on qualified foreign investors’ access to domestic commodity futures, commodity options and ETF options.
Among the eligible products are E Fund STAR 50 ETF, E Fund ChiNext ETF, and E Fund SZSE 100 ETF, managed by E Fund Management (E Fund), the largest mutual fund manager in China.
The SSE STAR 50 Index, which tracks the 50 largest and most liquid stocks on the STAR Market, is strategically concentrated in semiconductors. Its relevant funds have grown to US$25.4 billion, making it the fourth largest broad-based index of A-share market.
The ChiNext Index comprises 100 high-growth firms from the ChiNext Board, with 92% exposure to strategic sectors like new-generation information technology, new energy vehicles and healthcare. Since 2021, its constituents have delivered robust revenue and net profit CAGR of 21% and 14%, respectively.
