FINANCE

China to Open ETF Options Market to Foreign Investors From October

Published: Jun. 19, 2025 4:54 a.m. GMT+8

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A bull statue outside the Shanghai Financial Exchange Square, which houses the Shanghai Stock Exchange, China Financial Futures Exchange and the offices of the China Securities Depository and Clearing Corp., in Shanghai, on June 5, 2025.

China’s top securities regulator announced Wednesday that qualified foreign investors will be allowed to trade exchange-traded fund (ETF) options onshore from Oct. 9, 2025. The move marks a significant expansion of access to China’s derivatives markets — but with a clear caveat: trades must be for hedging purposes only.

The China Securities Regulatory Commission (CSRC) said the reform would allow global investors to use ETF options — vital risk management tools long used by domestic traders — to better navigate China’s volatile equity markets.

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Qualified foreign investors can trade ETF options on China’s onshore markets from October 9, 2025, for hedging purposes only.
ETF options trading volume is already significant, with open interest exceeding 1 million contracts in main indices and strict position limits imposed.
The CSRC plans further reforms, including expanding the QFII scheme, increasing available derivatives to 100 products, and potentially launching RMB forex futures.

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Who’s Who

Huatai Securities: Huatai Securities, a Chinese financial institution, has a distinguished role in expanding access to investment tools. Hu Xisha, the head of financial innovation at Huatai Securities, highlighted that including ETF options expands arbitrage and risk management, fostering market demand for ETFs among long-term funds.

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What Happened When

February 2015：: ETF options were first introduced in China with the launch of the SSE 50 ETF option on the Shanghai Stock Exchange.

Since early 2024：: The CSRC has been gradually raising restrictions on foreign investor access to domestic derivatives, including commodity futures, commodity options, and ETF options.

Wednesday, June 18, 2025：: China's top securities regulator announced that qualified foreign investors will be allowed to trade exchange-traded fund (ETF) options onshore from October 9, 2025.

Wednesday, June 18, 2025：: At the Lujiazui Forum, CSRC Chairman Wu Qing said more capital market reforms are coming soon, including a revamp of the QFII scheme, expansion of futures and options products for foreign investors, and the possible launch of RMB forex futures.

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