Core Viewpoint - The China Securities Regulatory Commission (CSRC) has issued a plan to optimize the Qualified Foreign Institutional Investor (QFII) system, aiming to enhance its attractiveness to long-term foreign capital and create a new open structure for coordinated onshore and offshore channels [1][7]. Group 1: Overall Requirements - The plan aims to implement reforms within approximately two years, focusing on optimizing access management and facilitating investment operations to attract more long-term foreign capital [7]. Group 2: Access Management Optimization - The plan includes streamlining the pre-investment access process by simplifying materials and integrating procedures for efficient handling of qualifications, licenses, foreign exchange registration, and account openings [9]. - A "green channel" will be established for sovereign funds, international organizations, and pension charity funds to simplify their entry into the Chinese market [4][9]. Group 3: Investment Operation Facilitation - The plan aims to enhance the efficiency of fund transfers and verifications, improving the quality of services provided by custodians and securities firms [10]. - It will also improve the operational efficiency of securities accounts to better meet the needs of asset management institutions [10]. Group 4: Investment Scope Expansion - The use of ETF options for risk management will be permitted, allowing foreign investors to hedge their positions effectively [3][11]. - The plan will gradually open up more commodity futures and options trading to meet the diverse asset allocation needs of foreign investors [11]. Group 5: Policy Expectations - Clear rules for short-term trading by foreign public funds will be established, ensuring equal treatment with domestic public funds [2][12]. - The plan will enhance the management of cross-border investment models, including the management of income swaps for QFII channels [12]. Group 6: Service Support Enrichment - Domestic licensed institutions will be allowed to provide investment advisory services to foreign investors, with new rules for securities and fund investment consulting being expedited [5][12].