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The official China Securities Journal has reported that China will limit the participation of foreign investors in its index futures market. It will be capped at 10 percent of their permitted investment quotas.
It also says that funds under the Qualified Foreign Institutional Investor or QFII scheme, would be allowed to trade in China's three-month-old index futures market for hedging purposes. Any trade must be closely linked to the spot market. The report says the investment limit will be set at 10 percent of their initial permitted quotas under the QFII scheme. The securities regulator is expected to invite public opinion on the matter soon.