CHINA’S securities regulator has expanded the investment scope for foreign investors, adding key commodity and stock market derivatives in the latest move to open its financial markets. Qualified foreign investors will be able to trade commodity futures, commodity options and stock index options, the China Securities Regulatory Commission (CSRC) said on its website Friday. The changes will take effect in Nov. 1. According to the CSRC, qualified foreign investors’ trading of stock index futures options will be restricted to transactions for hedging purposes. “Expansion of the investment scope for qualified foreign investors is a major measure for implementation of onshore market system reforms, and further expanding the openness of the domestic securities futures market,” said the CSRC. “It will provide more risk avoidance products and allocation tools to offshore investors, help to attract more offshore capital and raise the international influence of the domestic capital markets.” China is opening its financial markets to bring in more foreign investments to redirect its export-led economy. The country has also opened to foreign banks taking full ownership of investment banks, asset managers and other ventures. Goldman Sachs Group Inc. announced Sunday it had received approval to take full ownership of its securities venture, easing its push to expand in China. There’s increasing interest in products to hedge risks in China’s markets as foreign investors expand their holdings. Regulators in China have relaxed the Qualified Foreign Institutional Investors program, a key channel for global funds to buy China assets multiple times in recent years. In 2019, regulators scrapped investment limits on stocks and bonds, meaning global funds no longer need approvals to purchase quotas to buy such assets. Last year, the CSRC said it planned to expand the derivatives market by letting foreigners use financial futures, commodity futures and options, without giving a time frame. The CSRC said the move will attract more foreign capital and pledged to work with China’s central bank and the State Administration of Foreign Exchange to open more financial instruments to foreign investors in deepening market reform. (SD-Agencies) | 