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The CSRC: Further expanding the scale of the QFII and RQFII 2014-09-11

Source: The China securities journal
 
 
The CSRC spokesman Deng Ge said at the news briefing on 11th July, recently the related departments have simplified the operation of RQFII limits and also have increased the convenience of the usage of RQFII limits. These measures are highly welcomed by the CSRC. Next, the CSRC will continue to maintain close communication with the related departments, improve the system and expand the scale of the QFII and the RQFII further. Moreover, the CSRC will introduce more foreign long-term funds and expand the reform and development of capital market. At the same time, the related departments of the CSRC are studying and drafting the innovation and development views of the futures and financial derivatives industry. It is planned to be officially launched, in consideration of widely solicit opinions from various parties.
 
Deng Ge said that, in recent years, along with the rapid development of the futures market in China, there are significant boost among the futures company’s compliance status, capital strength and the ability to service the real economy. At the same time, the future company’s business scope also expanded. The following kinds of business are launched such as futures investment consulting business, asset management and risk management subsidiary business. It has preliminary changed the previous single brokerage business model. Overall, there are good foundation and conditions for the innovation development of the future industry in China.
 
Deng Ge pointed out that to promote the development of the futures management institution innovation is an important implement of ‘the state council on further promote the healthy development of the capital markets several opinions (2014)’. Previously, the CSRC has respectively issued ‘Opinions on further promoting the development of the securities management institution innovation’ and ‘Innovation opinions on promoting the development of securities investment fund industry’ on May 15th and June 13th. It defined the main principle of promoting the securities industry and the funds innovation industry development in the following period. Moreover, it clarified the main tasks and specific measures. In order to enhance the competitiveness of the futures industry, to promote the development of the intermediary institution innovation, the related departments of the CSRC are studying and drafting the innovation and development views of the futures and financial derivatives industry. It is planned to be officially launched, in consideration of widely solicit opinions from various parties.
 
Some media reports that the first ‘collect the funds’ license of the securities business has been issued. However, Deng Ge denied. The related practice of Haitong securities is actually a joint project of a securities company and the third party payment agency. They use the third party payment function to explore the improving of customer experience. Media calls ‘the collection funds’ refers to a customer to money deposited in banks, transfer to a third party payment institutions to open an account for it. The third party payment institutions, in which have played an importance role in funding the collection. Haitong securities does not hold a license.