Page 57 - 期货和衍生品行业监管动态（2024年7月刊）

期货和衍生品行业监管动态

Measures on the Funds Management of Domestic Securities and Futures Investment

by Foreign Institutional Investors (hereinafter referred to as the “Measures”). This

revision further optimizes the cross-border fund management for Qualified Foreign

Institutional Investors (QFII) and RMB Qualified Foreign Institutional Investors

(RQFII). The Measures will take effect on August 26, 2024.

The main contents of the newly revised Measures include: First, further

simplification of business registration procedures. It specifies that QFII/RQFII

business registration is to be handled by the primary reporter (custodian) through the

State Administration of Foreign Exchange’s digital platform. It also clarifies matters

concerning change registration and cancellation registration. Second, further

optimization of account management. It consolidate RMB special deposit accounts

used for securities transactions or derivatives transactions, reducing the number of

accounts required for different types of investments and thereby lowering the cost

burden for business entities. Third, further improvement of exchange management. It

optimizes the management of cross-border fund flows for QFII/RQFII, improves the

principles for the management of currency exchange for inbound and outbound funds,

and facilitates the trading of domestic securities assets by foreign institutional
investors. Fourth, unified foreign exchange risk management model for QFII/RQFII

and direct access to the China Interbank Bond Market (CIBM). Under the premise of

adhering to the principles of genuine spot transactions and hedging, it specifies that

QFII/RQFII can conduct spot foreign exchange transactions and foreign exchange

derivatives trading through domestic financial institutions with foreign exchange

business qualifications, other than their custodians, as well as through the interbank

foreign exchange market and other channels.

The Measures contributes to the establishment of a concise and unified fund

management rule for onshore securities investment opening channels, enhances the

convenience of QFII/RQFII investments in the Chinese capital market, and further

improves the quality of capital program opening-up.

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