WSJ – China has agreed to allow qualified foreign investors and foreign joint ventures to trade stock index futures though China’s Qualified Foreign Institutional Investor program, the U.S. said in a statement Tuesday, moving towards allowing institutional investors to hedge their Chinese holdings.
The statement about the QFII program, which allows designated foreign investors to trade yuan-denominated A-shares, was released at the close of the Strategic and Economic Dialogue between the two countries in Beijing. It wasn’t clear when the trading of stock index futures by QFII institutions would begin. Index futures are agreements to buy or sell an index at a preset value on an agreed date.
