QFIIs Gain Access to Onshore ETF Options As A-share Market Opening Deepens

The Wire

25-06-2025

GUANGZHOU, China, June 25, 2025 /PRNewswire/ -- Qualified Foreign Institutional Investors (QFIIs) will be permitted to trade onshore ETF options starting October 9, exclusively for hedging purposes, according to the China Securities Regulatory Commission. This marks another major step in opening China's capital markets, following the introduction of commodity futures and options, which is believed to attract long-term foreign capital to allocate to A-shares by expanding risk management tools and enhancing market stability. Among the eligible products are E Fund STAR 50 ETF (Code: 588080), E Fund ChiNext ETF (Code: 159915), and E Fund SZSE 100 ETF (Code: 159901), managed by E Fund Management (E Fund), the largest mutual fund manager in China.
• The SSE STAR 50 Index, tracking the 50 largest and most liquid stocks on the STAR Market, is strategically concentrated in semiconductors. Its relevant funds have grown to US$ 25.4 Billion, making it the fourth-largest broad-based index of A-share market.
• The ChiNext Index comprises 100 high-growth firms from the ChiNext Board, with 92% exposure to strategic sectors like new-generation information technology, new energy vehicle and healthcare. Since 2021, its constituents have delivered robust revenue and net profit CAGR of 21% and 14%, respectively.
• The Shenzhen 100 Index aggregates 100 blue-chip leaders from the Shenzhen Stock Exchange, and emphasizes sectors such as advanced manufacturing, digital economy, and green energy, accounting for 73% weight collectively.
Data from China's State Administration of Foreign Exchange revealed that cross-border capital of non-banking sectors saw a net inflow of US$ 33 billion in May 2025, with foreign holdings of domestic stocks increasing month-on-month, reflecting growing foreign investor confidence and deeper integration of A-shares with global markets.
With its broad ETF product lineup and low management fees, E Fund has positioned itself as the preferred partner for foreign investors. According to Wind, from January 2024 to April 2025, E Fund's ETF assets grew by US$ 53.5 billion, with net inflows totaling US$ 41.2 billion, both ranking first in the market.
About E Fund Established in 2001, E Fund is a leading comprehensive mutual fund manager in China with over RMB 3.5 trillion (USD 497 billion) under management. It offers investment solutions to onshore and offshore clients, helping clients achieve long-term sustainable investment performances. E Fund's clients include both individuals and institutions, ranging from central banks, sovereign wealth funds, social security funds, pension funds, insurance and reinsurance companies, to corporates and banks. Long-term oriented, it has been focusing on the investment management business since inception and believes in the power of in-depth research and time in investing. It is a pioneer and leading practitioner in responsible investments in China and is widely recognized as one of the most trusted and outstanding Chinese asset managers.
AuM includes subsidiaries. Data as of March 31, 2025. FX rate is sourced from PBoC.
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