Guotai Junan Securities and a world-renowned third-party qualified foreign 
institutional investor (QFII) completed the first QFII refinancing securities 
lending transaction in the A-share market on Monday, the first trading day 
after the new rules for QFII and Renminbi Qualified Foreign Institutional 
Investors (RQFII) took effect.

It has been the first transaction between domestic financial institutions and 
overseas QFIIs in refinancing business since the opening of domestic financial 
market.

On September 25, China Securities Regulatory Commission (CSRC), together with 
the People's Bank of China and the State Administration of Foreign Exchange, 
published new rules to combine the previous two separate sets of regulation for 
the QFII and RQFII schemes into one, lowering entry requirements and 
simplifying procedures to facilitate foreign investment.

The new rules, effective last Sunday, has clearly included margin trading and 
refinancing securities lending in the investment scope of QFIIs, which will 
help optimize the mechanism for the further development of China's capital 
market, continuously adapt to the needs of foreign investors, attract more 
medium and long-term funds into the market, and better stimulate the vitality 
of market players.

Guotai Junan Securities is one of the first batch of securities firms that 
carry out margin trading and one of the first nine securities firms that pilot 
refinancing business on the sci-tech innovation board (STAR market). In the 
future, it will continue to integrate advantageous resources and provide 
comprehensive services for domestic and overseas investors with advanced 
trading system and professional services.

Source: Guotai Junan Securities