China to open derivatives bourse to foreigners

#1
Now this is interesting.........

SHANGHAI (Reuters) - China is likely to open the gates of its new derivatives exchange to foreigners next year to attract trading volume and allow investors to hedge their mainland stock investments.

Liu Zhongyuan, vice president of Topwin Futures Co. in Shanghai, said in an interview for the Reuters China Century Summit that the exchange is expected to allow foreign access through China's qualified foreign institutional investor, or QFII, program.

China's regulator is also likely to give the green light to QFIIs to enter into the country's commodities futures markets next year, he said.

"There will be a breakthrough in allowing QFIIs into the Chinese futures markets next year," Liu told Reuters in an interview at his Shanghai office on Thursday.

The Shanghai Financial Derivatives Exchange, to be formally launched on Friday, will offer futures based on an index of the 300 largest companies traded on the Shanghai and Shenzhen exchanges by year-end, said Liu, who helped set up the bourse.

Currently, investors holding QFII quotas are not allowed to trade in China's futures markets. But they can trade stocks and bonds.

Mock trading of stock index futures will next week, although actual trade is not expected until later this year.
http://today.reuters.com/summit/sum...c=090706_1243_FEATURES_reuters_summits:_china

Fortune and glory , or the South Sea Islands trading company?
 
#2
This is basicaly another round in the endless Shanghai V's the Beijing / Hong Kong Axis saga. It will be very heavily regulated and not really applied in normal 'free market' principles.
 
#4
jonwilly said:
Will it be like Thailand (SET) and all profits be TAX FREE.
john
I seriously doubt it John
 
#5
armchair_jihad said:
jonwilly said:
Will it be like Thailand (SET) and all profits be TAX FREE.
john
I seriously doubt it John
If it's anything like the FICE (foreign investor commercial enterprise) program they introduced in the last two years or so it will be a great idea in theory and a real haemorroid in practice.

lancslad
 
#6
as with all things in China Lancslad, it depends who you know
 
#7
armchair_jihad said:
as with all things in China Lancslad, it depends who you know
Not just China in this region, although from experience they've still some serious catching up to do with Indonesia, the Philippines and Thailand on the "back hander" index :D

lancslad
 

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