China – SSE Stock Option Trading Re: Short Hedging

China – SSE Stock Option Trading Re: Short Hedging

On 30 September 2025, SSE issued notice stock options trading by QFIIs, RQFIIs.

  • SSE issued Notice on matters related to participation of qualified foreign institutional investors (QFII) and RMB qualified foreign institutional investors (RQFII) in stock options trading.

Highlights of Notice

  • QFIIs and RQFIIs may participate in trading in open-ended ETF options listed on SSE for hedging purposes only.
  • They may apply for position limits for spot long and spot short hedging.
  • QFIIs and RQFIIs must register their planned Shanghai A-share securities accounts with SSE through their entrusted options trading institutions.
  • Once the registration is approved, they can then open a corresponding derivatives contract account as a dedicated hedging account.
  • They must submit hedging quota applications for relevant options products to SSE.
  • Options trading institutions must exercise due diligence and strengthen compliance management of QFIIs and RQFIIs' business applications and trading activities.
  • If QFIIs/RQFIIs and options trading institutions violate the requirements of this notice, SSE may take measures such as verbal warnings, written warnings, adjustments to position limits, restrictions on opening positions, and reminders through conversations.

Effectiveness

  • The notice is effective from 30 September 2025.