China has taken another step toward opening its financial system to the rest of the world by expanding the range of investment options available to foreigners. The reforms involve the Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors programs, and were announced Friday by the securities regulator, central bank and foreign exchange administration. The changes came on the same day that FTSE Russell became the last major bond index compiler to add Chinese government debt to its gauges. While the wording of the new rules was vague, they provide a framework for reforms that are to come into effect on Nov. 1. Regulators plan to release lists laying out the details for specific investment products, though no time frame was announced for those. The changes are focused on: Expanding the derivatives market by letting foreigners use financial futures, commodity futures and options. Giving foreigners the opportunity to repurchase bonds, allowing them to pledge notes they hold for cash, and potentially re-invest the funds in bonds. Opening the National Equities Exchange and Quotations, or NEEQ, stock venue in Beijing to overseas investors and also letting them engage in margin trading. Giving foreigners a channel to private investment funds. for more interpretation, please check https://www.fangquant.com/t/988#reply0
Why should a foreigner invest in something denominated in a currency that is routinely devalued by the State ?
No investing in China's financial market is like checking into roach motels. Your money checks in but they don't check out.
What Investors Think of China’s Latest Step Toward Financial Opening China is trying to destroy the last domain that the West has a tiny bit of advantage - Wall Street. China is ruthless but also desperate.