China started futures trading in April, allowing domestic investors to profit from declines in equities for the first time. The CSI 300 Index, which tracks the 300 most liquid stocks on the Shanghai and Shenzhen stock exchanges, is the underlying index for the futures.

China?s securities regulator allows selected overseas investors to invest in the nation?s stock markets under the qualified foreign institutional investor, or QFII, program.

Currently, 89 qualified overseas institutional investors received $17.72 billion in quotas as of the end of June, the China Securities Journal reported.

Futures, or agreements to buy or sell the CSI 300 Index at a preset value, began trading on the China Financial Futures Exchange in Shanghai on April 16, while margin trading and short selling was introduced March 31.

Each transaction by overseas investors needs to be approved by the China Financial Futures Exchange, according to Monday?s report. Relevant rules will be released recently for public comment, the Beijing-based newspaper said.

Source : Konaxis