China closes another offshore investing loophole as TRS faces restrictions (opens original article in a new tab)

Chinese regulators restricted total return swaps (TRS) to limit domestic investors' access to offshore markets, targeting a loophole for overseas asset exposure.

• Chinese regulators tightened offshore investing through derivatives by restricting total return swaps (TRS) via
• Brokerages halted expansion of offshore-related portfolios, including new TRS contracts and existing mandates
• TRS allows exposure to overseas assets without direct capital transfer, making it a popular route for mainland investors