China opened its financial and commodity markets further to foreign investors on Friday, allowing qualified overseas institutions to trade broadly domestic futures and options instruments, reports Reuters. The move is part of the Beijing’s plan to liberalize its vast capital market, the world’s second-largest, and to deepen China’s pricing power in commodities such as crude oil and iron ore.
The China Financial Futures Exchange said in a statement it allowed foreign access to stock index options. Targeted investors are those under the Qualified Foreign Institutional Investor (QFII) scheme and its yuan-denominated sibling, RQFII.
The two groups of investors have been allowed in stock index futures trading since November of 2020.