Jan. 25 (Bloomberg) -- China selected five foreign institutional investors to trade stock-index futures in the country, according to an official from the China Financial Futures Exchange.
The exchange approved the five qualified foreign institutional investors “recently,” said the official, who didn’t identify them and asked not to be named because the information isn’t public. The QFIIs may trade the futures only for hedging purposes, China Business News reported today.
China is seeking to attract more foreign money into its capital markets by broadening the range of investment instruments available to foreign institutions. Policy makers can increase the investment limit on QFIIs 10-fold, Guo Shuqing, chairman of the China Securities Regulatory Commission, said Jan. 14.
The CSRC increased the total allotment under the QFII program to $80 billion in April. More than 200 institutions have obtained QFII status as of December, according to the watchdog. The investors together have about $37.4 billion approved for investment in China’s capital markets, according to the country’s foreign exchange regulator.
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