China's securities regulator said on Friday that it supports the decision from the Hong Kong Securities and Futures Commission (SFC) to launch an A shares index futures contract.
The move is conducive to enriching the risk management tools for overseas investors when participating in the A shares market and facilitating the further growth of long-term capital flows into the A shares market, said the China Securities Regulatory Commission (CSRC) in an online statement.
It also helps to consolidate and maintain Hong Kong's status of being an international financial center, the statement noted.
The CSRC has worked with the Hong Kong SFC to refine the regulatory cooperation over derivatives and arrangements on cross-boundary risk prevention, according to the statement.
The Chinese mainland and Hong Kong will strengthen information exchange and supervisory enforcement cooperation to crack down on cross-boundary illegal activities and protect the lawful rights of investors, the statement added.
The CSRC said that it would steadily promote the reform and opening-up of stock index futures market in the mainland, and promote the coordinated development of onshore and offshore A shares index futures products and markets.
The Hong Kong SFC has approved the launch of an A shares index futures contract by the Hong Kong Exchanges and Clearing Limited on Friday.