China allows foreign investors into treasury futures

China has allowed qualified foreign investors to participate in treasury futures trading starting Friday, in a move aimed at enhancing the appeal of renminbi-denominated bond assets.

The policy, announced on April 24 by the China Securities Regulatory Commission in consultation with the People's Bank of China and the State Administration of Foreign Exchange, will permit participation for hedging purposes only.

The CSRC said the move is designed to further expand the investment scope for qualified foreign investors, enrich their interest rate risk management instruments and strengthen the attractiveness of China's bond market.

Qualified foreign investors participating in treasury futures trading will be required to comply with relevant rules set by regulators and exchanges.