On 16 February 2023, Nanhua Futures, as the organiser, jointly organised with DBS Bank and Shanghai Futures Exchange, the QFII themed online webinar "Investing in China 2023: QFII participation in the Chinese derivatives market". The webinar came to a successful held, with over 100 participants attending.
DBS Bank's Executive Director and Head of Global Transaction Services, Securities Trust Services, Mr. Yan Yan Hu, addressed the conference. Mr. Hu pointed out that as of September, the number of QFII applications approved reached 72 alone, which means that the process of opening up China's derivatives market to the outside world has reached a higher level and is conducive to expanding the international influence of China's derivatives market.
DBS Bank's Head of Securities & Fiduciary Services, Global Transaction Services, Ian Jin Hu, gave a speech to the webinar. Mr. Hu pointed out that as of September, the number of QFII applications approved reached 72, which means that the process of opening up China's derivatives market to the world has reached a higher level and is conducive to expanding the international influence of China's derivatives market.
Hung Lai Chow, Executive Director and Senior Economist of DBS Bank, began his presentation on the economic outlook and prospects for China in 2023, noting that 2023 will see a strong rebound in China's economy based on the end of the country's zero covid policies and policy shifts in the property market. Mr Chow said the DBS had revised China's GDP growth forecast to 5.5% in 2023. The country will double its focus on the property market, with policies focused on supporting the stable development of real estate. Plenty of liquidity support have been introduced since Nov-22. On supply side, for example, resumption of onshore equity financing, relaxation on presales escrow account proceeds and 16 measures to stabilize property market. On the demand side, the end of the zero spending policy is likely to stimulate economic and income growth. There is also the potential for LPR and mortgage rate cuts and relaxation on second home buyers. The measures on both the supply and demand sides will reshape price expectations and bring about a smooth development of the property market in 2023. These policy changes do not only bring a brighter future outlook for the Chinese economy, but likewise offer more development opportunities for countries that rely on Chinese consumption, Mr Chow said.
Yang Yiping, Associate Director of International Cooperation Department of Shanghai Futures Exchange and International Energy Exchange, followed up with a presentation on "Chinese futures market development and products introduction ", explaining the opening up process of SHFE and INE and the latest QFII policy, as well as her thoughts on the next development of the futures market. Ms. Yang pointed out that there are now a total of 103 varieties in the Chinese futures market, 23 internationalized varieties and 45 QFII-investable varieties, which is certainly a great step forward in increasing the depth of China's derivatives market. Ms. Yang then went on to introduce the most traded varieties in each industry on the exchange, and among the major categories of energy, industrial metals and agriculture, SHFE and INE's varieties have been on the list many times and are at the top of the list. Ms. Yang said that SHFE and INE will fully support the opening up of China's derivatives market to the outside world and plan to develop more futures and options varieties and launch more investment and education materials and market activities for foreign investors in the future.
Mara Wang, the Senior Manager of International Department, Nanhua Futures, provides insight into QFII participation in China's derivatives market trading opportunities. Ms. Wang noted that China's futures and options markets are developing rapidly and show remarkable liquidity and diversity. Ms. Wang provided an in-depth analysis of the multiple trading paths for foreign investors to participate in China's derivatives market and said that Nanhua Futures has rich experience in serving foreign institutions. It has continuously invested in information technology over the years to support TT, CQG, ATP, Esunny, Bloomberg and other mainstream international trading platforms to ensure that we are at the forefront of technology and can provide one-stop integrated financial solutions for foreign intermediaries, QFIIs and foreign investors to participate in the China futures market.
Finally, Iris Gao, the Vice President of Securities & Fiduciary Services, DBS China, delivered a keynote speech on QFII custody services, which focused on the overall solutions that custodian banks can provide to QFII investors. Ms. Gao introduced Unified QFI, the most comprehensive channel for China capital market investment. It combines the measures and regulations of QFII and RQFII, relaxes the eligibility requirements for applicants, simplifies the application process, expands the investment scope, removes restrictions on the number of custodian banks, brokerage firms and futures brokers designated by QFIIs, and has continuously strengthened regulation, making it the most comprehensive investment channel for the Chinese capital market.
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Webinar recording is now available via YouTube!
