China to Exempt Certain Foreign Mutual Funds From Short-Term Trading Rules, Sources Say

China’s securities regulator is drafting rules to exempt certain foreign mutual funds from tough regulations designed to limit short-term trading and prevent insider trading, in its latest move to further open up the country’s capital market to overseas investors.

The China Securities Regulatory Commission (CSRC) is likely to allow overseas mutual fund products that hold 5% or more of a Chinese mainland-listed company to carry out short-term trading without giving up profits, sources close to regulators told Caixin.