China's Securities Regulatory Commission in Beijing. (Photo: CFP)

China's securities regulator announced Friday that qualified foreign investors have been allowed to participate in treasury bond futures trading starting from the same day, with trading activities limited to hedging purposes.

The China Securities Regulatory Commission said in a statement that the move is part of the efforts to broaden the investment scope for qualified foreign investors and enrich interest rate risk management tools available to foreign institutional investors.

The policy is also expected to enhance the appeal of yuan-denominated bond assets, improve the stability of foreign institutional investment behaviors and push forward the high-quality development of both spot and futures markets for bonds, according to the regulator.

The regulator said it will roll out more measures to advance reform and development of the futures market, and further promote the high-standard institutional opening up of China's capital market.