QDII is the English abbreviation of Qualified Domestic Institutional Investors.

It refers to investments in stocks, bonds and other securities that are established in a country under the conditions that the RMB capital account is not convertible and the capital market is not open. With the approval of the relevant departments of the country, domestic institutions are allowed to invest in stocks, bonds and other securities in overseas capital markets in a controlled manner.

An institutional arrangement for business.

QDII is an investment system. The direct purpose of establishing this system is to "further open the capital account to create more demand for foreign exchange, make the RMB exchange rate more balanced and market-oriented, and encourage more domestic enterprises to go abroad, thereby reducing trade."

Surplus and capital account surplus" directly manifests itself in allowing domestic investors to directly participate in foreign markets and obtain global market returns.

The QDII system was first proposed by the Hong Kong government department. Like CDR (depositary receipts) and QFII, it will be an expedient measure for the opening up of the mainland capital market under foreign exchange controls to allow domestic capital account projects to be opened up even if the capital account items are not fully liberalized.

Investors invest in overseas capital markets.

Fund-based QDII is approaching investors faster and faster. Recently, four fund companies have been officially approved for QDII qualifications, namely the local fund companies Southern and Huaxia, as well as Harvest and Shanghai Investment Morgan with joint venture backgrounds.

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■The investment threshold is lower than that of banking QDII. For many investors, the greatest significance of QDII is to open up an effective channel for investing in overseas markets, thus adding a new channel to effectively diversify investment risks in the A-share market.

Previously launched banking QDII products can only invest in fixed-income products. Most of them choose strategies linked to exchange rates, structured notes and indexes. The risks are small, but the yields are low. In the context of RMB appreciation, it is difficult for investors.

is obviously not attractive enough.

So compared with bank QDII, will fund QDII be attractive?

Unlike bank QDII products with high minimum subscription amounts ranging from 50,000, 100,000 to 300,000, the investment threshold for fund QDII is much lower. For example, the minimum subscription amount for QDII products of China Southern and China Asset Management is only 1,000 yuan, which is more convenient.

Ordinary investors participate.

The investment scope of fund QDII is also wider.

The China Banking Regulatory Commission stipulates that funds invested in the stock market shall not exceed 50% of the total net asset value of financial products. This restriction dilutes the possible rate of return of bank QDII products.

Fund QDII products do not have this restriction, and their investment ratio in the stock market can theoretically reach 100%.

"At present, only the Hong Kong Securities Regulatory Commission has signed a memorandum of understanding on regulatory cooperation in overseas financial management business on behalf of clients with the China Banking Regulatory Commission. According to regulations, banks should choose stock market investments supervised by overseas regulatory agencies that have signed a memorandum with the China Banking Regulatory Commission. Therefore, bank QDIIs can only invest in Hong Kong stocks. And with

There are more than 30 countries and regions that have signed memorandums with the China Securities Regulatory Commission, so the investment scope of QDII funds can basically target major global markets," said Fu Fan, deputy general manager of China Investment Morgan Fund Company.

In addition, the QDII products launched by banks are all operated by the foreign partners of the products. Since the bank has no external asset management business, the foreign party has decision-making power; while the fund-based QDII products will be operated by the fund company personally, and the initiative will be more

Bigger.

How is it different from A-share open-end funds?

In terms of investment objects, domestic A-share open-end funds currently agree to invest in stocks, bonds, some cash instruments and derivatives, and are not allowed to invest in other funds.

Some funds are QDII investments in some emerging markets, such as Mexico, Brazil, Russia and other markets, and may directly purchase local exchange-traded funds (ETFs) and some active investment funds.

In other relatively familiar markets, such as the Hong Kong market, direct stock purchases are adopted.

Compared with A-share open-end funds, fund QDII may be slightly slower in terms of payment recovery time.

When most A-share open-end funds are redeemed, the payback time is generally T+4, and some funds may arrive on T+3 or T+5; while the fund is a QDII product, the payback period may be longer.

Taking Southern Fund, which plans to design its QDII products as open-end funds, as an example, the company believes that the QDII fund redemption cycle may be from T+7 to T+8, and no later than T+10.

This is mainly determined by the fact that QDII products adopt the form of local currency fundraising and foreign currency investment.

■How to choose QDII fund?

Currently, four fund companies are busy preparing their first QDII products. For investors who have just figured out A-share open-end funds, fund QDII is obviously a new thing.

So, from what perspectives should investors choose QDII funds?

First of all, it is very important to choose a fund company, which depends on the company's professionalism and integrity; secondly, because the fund is a QDII investment in overseas markets, overseas investment experience, talent reserves for investing in overseas markets, overseas custodian banks, and foreign technical support are also important

Very important.

These may seem a bit complicated to investors, but you can have a general understanding of this through the past performance of the fund company's foreign investment funds.