business overview of QFII

(I) Characteristics of QFII mechanism in China

1. The leap-forward development of QFII mechanism when it was introduced.

2. The subject scope of QFII access is expanded and the requirements are improved.

3. The QFII system in China is designed to attract long-term institutional investors by lowering the qualification standards and strengthening the liquidity of funds.

(II) Form and investment style of QFII in A-share market

1. At present, QFII mainly adopts two forms in A-share market: self-operated mode and fund mode.

2. In the domestic securities market, QFII has the investment style of steady operation, long-term investment and relatively standardized behavior.

3.QFII adheres to the core idea of decentralized portfolio theory, guides its long-term investment with fundamental analysis theory, and makes short-term fine-tuning of target securities with technical analysis theory.

business overview of QDII

(I) Features of QDII fund products in China:

1.QDII funds have a wide range of investments, including stocks and (non-hedging) funds in almost all developed countries and most emerging markets.

2.QDII funds have rich investment portfolios. Some QDII funds hold financial derivatives such as ETF, FOF, warrants, options and stock index futures.

3. In the process of investment management, domestic fund companies can not only rely on the strength of overseas investment consultants, but also form a special investment team to participate in the whole process of overseas investment, which has complete active decision-making power, reflecting the characteristics of strong professionalism and more proactive investment.

4. The threshold of QDII fund products is low, and the subscription threshold of most financial investment products is tens of thousands or even hundreds of thousands of RMB, while the starting point of QDII fund products is only l RMB, which is suitable for a wider range of investors to participate.

(II) Investment style of QDII funds in China

From the investment style, QDII funds in China have various investment styles such as value-added, positive growth, steady growth and exponential growth.

in terms of investment types, QDII funds in China are mostly stock-based, with various asset allocation and trading methods.