The concrete meaning of qfii system
QFII stands for qualified foreign institutional investors. This system requires foreign investors to meet certain conditions and obtain the approval of relevant domestic authorities before they can enter the domestic securities market.
Generally speaking, QFII is our overseas capital. For example, some institutions think China is good and hope that funds will come in. Compared with China Fund, if you want to invest overseas, you can sell your fund through QDII. But it must be noted that this is an organization, and an organization is an audit. Compared with Northbound Fund, there is a set of audit system, but the core is a cycle. Free access to funds is quite convenient, and QFII institutions need an audit system.
Corresponding to it is RQFII. It is the English abbreviation of RMB qualified foreign institutional investors. It mainly refers to an overseas legal person who can use overseas RMB funds to invest in securities after approval by the CSRC. Its appearance is conducive to the establishment of an overseas RMB repatriation mechanism, making it a carrier of RMB repatriation and constantly promoting the internationalization trend of RMB. At the same time, it can also promote overseas funds to form more diversified investment strategies. Generally speaking, having such an asset management institution in Beijing can further enhance the internationalization level of mainland institutions.
In recent years, China's measures to cancel the quota limit for qualified foreign investors have greatly facilitated foreign institutions to invest in the domestic financial market, created favorable conditions for more long-term funds to continue to enter the domestic financial market, and played a positive role in the steady opening and deepening reform of China's financial market. On the other hand, the entry of overseas institutions that pay more attention to medium and long-term investment into the A-share market will help popularize the concept of value investment, improve the ecology of the A-share market, optimize the investor structure and promote the healthy development of the market. Stock trading commission discount, futures trading commission discount, options, financial integration and stock connection are all the same.
I believe everyone has an answer to this question of qfii institutions. In fact, before we invest, we must understand the process of each link and understand the specific content of each link in the investment process, which will not only help us to invest better, but also make our capital use more reasonable.