Guotai Junan Securities and a third-party qualified foreign institutional investor (QFII) have completed the first QFII refinancing securities lending transaction in the A-share market, the first trading day after the new rules for QFII and Renminbi Qualified Foreign Institutional Investors (RQFII) took effect.It has been the first transaction between domestic financial institutions and overseas QFIIs in refinancing business since the opening of domestic financial market.
On 25 September, China Securities Regulatory Commission (CSRC), together with the People’s Bank of China and the State Administration of Foreign Exchange, published new rules to combine the previous two separate sets of regulation for the QFII and RQFII schemes into one, lowering entry requirements and simplifying procedures to facilitate foreign investment.
The new rules, effective last Sunday, has clearly included margin trading and refinancing securities lending in the investment scope of QFIIs, which will help optimise the mechanism for the further development of China’s capital market, continuously adapt to the needs of foreign investors, attract more medium and long-term funds into the market, and better stimulate the vitality of market players.
Guotai Junan Securities is one of the first batch of securities firms that carry out margin trading and one of the first nine securities firms that pilot refinancing business on the sci-tech innovation board (STAR market). In the future, it will continue to integrate advantageous resources and provide comprehensive services for domestic and overseas investors with advanced trading system and professional services.