The China Securities Regulatory Commission (CSRC) announced (link in Chinese) on Friday that it will allow qualified foreign institutions to trade more types of onshore derivatives, after its discussions with the People's Bank of China and the State Administration of Foreign Exchange.

Investors under the Qualified Foreign Institutional Investor (QFII) scheme will be allowed to trade commodity futures, commodity options and stock index options, which will start from November 1, the CSRC said on its website.

Expanding QFII's investment scope would provide foreign investors with more hedging tools, help attract overseas capital and improve the international influence of the domestic capital market, the securities regulator said.

(With input from Reuters)