China Opens ETF Options to Foreign Investors—Hedging-Only Access from October 9

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In a landmark move to deepen capital market reforms, the China Securities Regulatory Commission (CSRC) has announced that qualified foreign institutional investors (QFIIs) will be allowed to participate in on-exchange ETF options trading, starting October 9, 2025. The access will be strictly limited to hedging purposes, as part of Beijing’s cautious approach to liberalizing its derivatives market.

This decision marks a significant step in China’s efforts to internationalize its financial markets, offering global investors more tools to manage risk while maintaining regulatory oversight. The CSRC emphasized that the move aligns with its broader strategy to enhance market transparency, liquidity, and risk management infrastructure.

Key Highlights:

Effective date: October 9, 2025
Eligible participants: Qualified Foreign Institutional Investors (QFIIs)
Product access: On-exchange ETF options
Usage restriction: Hedging only—no speculative trading permitted
Strategic intent: Deepen capital market reforms and attract long-term foreign capital
Regulatory safeguards: Enhanced surveillance and compliance protocols to monitor usage

This development is expected to boost foreign participation in China’s ETF ecosystem while reinforcing its commitment to measured financial liberalization.

Source: Global Times – CSRC Foreign Investment Measures | SCMP – Foreign Investment Reforms