CSRC to ban QFII quota use for China derivatives; ETF providers hit

The CSRC plans to ban derivatives dealers from using QFII quotas to on-sell derivatives mirroring CSI 300 index futures contracts to offshore clients. The move looks set to challenge ETF fund managers when hedging China index-tracking funds.


The derivatives desks of leading banks are unlikely to be able to use part of their permitted China investment quota to provide offshore investors with synthetic access mirroring China's only equity futures tracking the CSI 300, an on-going consultation paper launched by the securities regulator revealed this week.

The China Securities Regulatory Commission (CSRC) issued proposed rules governing approved foreign financial institutions under the qualified foreign institutional investors (QFII)

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It has been several years since we have seen volatility in gold. An increase in gold volatility can typically be associated with a change in sentiment and investor behavior. The precious metal has surged this year on increased demand for safe haven…

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