Qualified foreign investors trading stock index futures will not have a significant impact on the A-share market because of their small quotas, state media reported, citing securities analysts. Following this year’s Sino-US bilateral talks – the Strategic and Economic Dialogue – Beijing said it will allow qualified foreign institutional investors (QFIIs) to invest in the country’s stock index futures. "QFII’s quotas to invest in the equity market are comparatively small so their trading of index futures won’t greatly influence the market," said Gao Zijian, a derivatives analyst at Orient Securities. Yin Jianfeng, an analyst at the Chinese Academy of Social Sciences noted that compared with index futures in other countries, China’s market is still immature so it will be hard to measure how attractive QFIIs will find such products. China’s index futures were launched on April 16.
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