Core Viewpoint - The Shanghai Stock Exchange (SSE) has announced new regulations allowing Qualified Foreign Institutional Investors (QFIIs) and Renminbi Qualified Foreign Institutional Investors (RQFIIs) to participate in stock options trading, specifically for hedging purposes [1][2]. Group 1 - Qualified foreign investors can engage in trading of Exchange-Traded Fund (ETF) options listed on the SSE, with the trading purpose limited to hedging [1]. - Qualified foreign investors can apply for limits on both long and short hedging positions in the spot market [2]. - Qualified foreign investors must report their planned use of Shanghai A-share securities accounts through entrusted options operating institutions before opening corresponding derivative contract accounts designated for hedging [2]. Group 2 - Qualified foreign investors are required to submit applications for hedging limits for relevant options products through entrusted options operating institutions, and can only participate in hedging transactions after receiving approval from the SSE [2]. - Options operating institutions accepting applications from qualified foreign investors must diligently manage compliance regarding business applications and trading behaviors [2]. - The SSE may take measures such as verbal warnings, written warnings, adjustments to position limits, restrictions on opening positions, and reminders for any violations of the notification requirements by qualified foreign investors or options operating institutions [2]. Group 3 - The SSE will begin accepting applications for qualified foreign investors to participate in stock options trading from the date of this notification [3].

Core Points - The Shanghai Stock Exchange (SSE) has issued a notification regarding Qualified Foreign Institutional Investors (QFIIs) and Renminbi Qualified Foreign Institutional Investors (RQFIIs) participating in stock options trading, specifically allowing them to engage in ETF options trading for hedging purposes [2][3][4] - QFIIs can apply for both long and short hedging position limits in the spot market [2][3] - QFIIs must report their planned use of A-share accounts through entrusted options operating institutions before opening corresponding derivative contract accounts designated for hedging [2][3] - QFIIs are required to submit applications for hedging quotas for relevant options through their entrusted options operating institutions, and can only participate in hedging trading after receiving approval from the SSE [2][3][4] - Options operating institutions must diligently manage compliance regarding the business applications and trading behaviors of QFIIs [2][3][4] - The SSE can take various measures against QFIIs and options operating institutions for non-compliance with the notification, including warnings and adjustments to position limits [2][3][4] - The SSE will begin accepting applications for QFIIs to participate in stock options trading from the date of the notification [2][3][4]

Core Points - The China Securities Depository and Clearing Corporation Limited (CSDC) announced that qualified foreign institutional investors (QFIIs) and Renminbi qualified foreign institutional investors (RQFIIs) will be allowed to participate in stock options trading starting from October 9, 2025 [1] - The announcement is based on several regulatory documents, including the management measures for QFIIs and RQFIIs in domestic securities and futures investments [1] - CSDC emphasized the importance of market participants preparing for the technical aspects of the business to ensure a smooth implementation of the ETF options trading [1] Regulatory Framework - The notification is aligned with the "Management Measures for Qualified Foreign Institutional Investors and Renminbi Qualified Foreign Institutional Investors in Domestic Securities and Futures Investments" [1] - It also references the announcement regarding QFIIs and RQFIIs participating in stock options trading [1] - Specific guidelines for the settlement business related to stock options trading were published by CSDC on September 30, 2025 [1] Implementation Timeline - Qualified foreign investors will be able to engage in trading of exchange-traded fund options (ETF options) starting from October 9, 2025 [1] - Detailed procedures for registration and settlement will be outlined in the guides released by CSDC's Shanghai and Shenzhen branches [1]

9月30日，上交所发布关于合格境外机构投资者和人民币合格境外机构投资者参与股票期权交易有关事 项的通知。 六、合格境外投资者和期权经营机构违反本通知要求或者存在其他违规行为的，本所可以根据相关业务 规则的规定，对其采取口头警示、书面警示、调整持仓限额、限制开仓、谈话提醒等措施。 根据《合格境外机构投资者和人民币合格境外机构投资者境内证券期货投资管理办法》《关于合格境外 机构投资者和人民币合格境外机构投资者参与股票期权交易的公告》《上海证券交易所股票期权试点交 易规则》《上海证券交易所交易规则适用指引第1号——合格境外机构投资者和人民币合格境外机构投 资者》《上海证券交易所股票期权持仓限额管理业务指引》等有关规定，现就合格境外机构投资者和人 民币合格境外机构投资者（以下统称合格境外投资者）参与上海证券交易所（以下简称本所）股票期权 交易有关事项通知如下： 七、自本通知发布之日起，本所开始受理合格境外投资者参与股票期权交易的业务办理申请。 三、合格境外投资者应当通过委托的期权经营机构向本所报备计划使用的沪市A股证券账户，报备通过 后再开立对应的衍生品合约账户作为套期保值专用账户。 四、合格境外投资者应当通过委托的 ...