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China to authorize QFII investment in stock-index futures |
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21:28, August 16, 2007 |
The qualified foreign institutional investors (QFII) are soon to be authorized to participate in stock-index futures trading in China, said QFII fund managers.
Ke Shifeng, director of U.K.-based Martin Currie''s subsidiary company in China, said one billion U.S. dollars, or 10 percent of the total QFII quota, would be granted for foreign investors to put into the index derivatives market.
Ke said the detailed trading requirements were still unknown, but Martin Currie, with 120 million U.S. dollars in QFII quota in hand, had started preparations.
Chen Jialin, the investment director of the Yangtze Fund, which is mainly sponsored by U.S.-based Colony Capital and Shanghai Industrial Investment, also confirmed the news. The Yangtze Fund had held meetings to discuss measures in response to the awaited policy, said Chen.
But media officials with the regulatory authority China Securities Regulatory Commission declined to comment when contacted by Xinhua.
Opening the stock derivative market to foreign institutional investors would provide them with hedging tools in the A share market, said Fang Shisheng, a senior advisor with Orient Securities.
Under the new policy, "foreign institutional investors can hedge stock-index futures against falls in the stock market as a better way to protect their profits", said Fang.
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