Trial now
BOE APF PURCHASES

Short-dated analysis

US EURODLR OPTIONS

Latest structures

EQUITY TECHS

E-MINI S&P (Z1): Holding Above The 50-Day EMA

EQUITIES

Tech stocks are under pressure today

CORN TECHS

(Z1) Trend Needle Points South

CHINA
CHINA: Tuesday saw SAFE announce that it has decided to remove the QFII & RQFII
quota limits. SAFE will also start to revise the rules related to offshore
investors' FX remittance & seek State Council approval to simplify the
registration/approval process to use the market access points. While it is easy
to brush the move under the carpet owing to the limited use of the quotas, some
points are worth noting. Both channels do not have a daily trading limit, which
presents an advantage vs. the stock connect programmes, although the licencing
requirement is a hindrance vs the stock connects. The channels also have wider
access to A-shares than the stock connect programmes, and are subjected to
slightly less strenuous foreign holding limits than stock connect activities.
- While the move will not trigger any notable sharp capital inflows it does
fulfil 1 of FTSE's 2 outlined criteria to boost the inclusion of A-shares via
QFII & RQFII in its relevant indices; namely "an increase in the aggregate QFII
& RQFII quota levels." The remaining criteria was the "availability of Delivery
versus Payment via QFII & RQFII." There was no move to relax restrictions for
the outbound Qualified Domestic Institutional Investor (QDII) scheme.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com