CSRC Announcement Allows Qualified Foreign Investors to Participate in ETF Options Trading

According to the website of the China Securities Regulatory Commission (CSRC), the CSRC recently announced that, after consultation with the People's Bank of China and the State Administration of Foreign Exchange, it will allow qualified foreign institutional investors (QFIIs) to participate in on-exchange ETF options trading starting from October 9, 2025, with the trading purpose limited to hedging.

This is one of the specific measures taken by the CSRC to implement the decision-making arrangements of the "optimization of the QFII system" at the Third Plenary Session of the 20th CPC Central Committee. Since the beginning of this year, the CSRC has successively relaxed restrictions on QFIIs' participation in domestic commodity futures, commodity options, ETF options, and other products. This move aims to continuously expand the investable scope for QFIIs, leverage the advantages and attractiveness of the QFII system, facilitate the use of appropriate risk management tools by foreign institutional investors, especially allocation-oriented funds, enhance the stability of foreign investment behavior, and promote their long-term investment in A-shares.

Going forward, the CSRC will introduce more reform measures to optimize the QFII system, vigorously advancing the high-level institutional opening-up of the capital market.

[Announcement No. 13] "Announcement on Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors Participating in Stock Options Trading"

Announcement of the China Securities Regulatory Commission

[2025] No. 13

In accordance with the relevant provisions of the "Administrative Measures for the Investment in Domestic Securities and Futures by Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors" and other relevant regulations, after consultation with the People's Bank of China and the State Administration of Foreign Exchange, the CSRC hereby announces the following matters regarding the participation of qualified foreign institutional investors and RMB qualified foreign institutional investors (hereinafter collectively referred to as QFIIs) in stock options trading:

QFIIs are allowed to participate in the trading of exchange-traded fund options (ETF options) listed on trading venues approved by the State Council or the CSRC. QFIIs participating in ETF options trading shall comply with the trading rules of the CSRC and relevant trading venues, with the trading purpose limited to hedging transactions. This shall come into force on October 9, 2025.

China Securities Regulatory Commission

June 17, 2025