Core Viewpoint - China has opened its stock option market to foreign investors to enhance the attractiveness of yuan assets and promote international use of the Chinese yuan [1][3]. Group 1: Market Opening - The Shanghai Stock Exchange announced that qualified foreign institutional investors can now trade options for hedging purposes and can submit applications immediately [1]. - This move follows recent measures aimed at attracting global investors to China's bond market [1][3]. Group 2: Financial Instruments - Equity options provide the right, but not the obligation, to buy or sell a stock at a predetermined price in the future, which can help foreign investors hedge risks in China's 100 trillion yuan ($14.05 trillion) stock market [2]. - Currently, five option products are available on the Shanghai exchange, based on exchange-traded funds [2]. Group 3: Regulatory Environment - China's financial regulators are intensifying efforts to attract foreign investors, particularly in light of the diminishing appeal of dollar assets due to U.S. trade policies [3]. - Recent expansions include increased foreign access to the bond repurchase market and higher daily net trading limits on the cross-border scheme Swap Connect [3]. Group 4: Offshore Initiatives - Authorities have announced plans to enhance offshore yuan business in Hong Kong and have established an operation center in Shanghai to promote the global adoption of the central bank digital yuan [4].