1. The investment entities are different.
QDII refers to domestic investors investing in overseas capital markets, while QFII refers to qualified foreign investors investing in my country’s domestic capital markets.
2. Different uses of participating funds: QDII is issued in China, and foreign exchange is converted into RMB for domestic investment within the quota allowed by the State Administration of Foreign Exchange.
Participate in investing in capital, bond or foreign exchange markets outside China.
QFIIs are issued in countries outside China and participate in investments in China's capital, bond or foreign exchange markets through legal channels.
Extended information: Guo Song, Director of the Capital Account Management Department of the State Administration of Foreign Exchange, recently stated that the State Administration of Foreign Exchange will coordinate to promote the opening of the capital market and reform the qualified domestic and foreign institutional investor (QDII and QFII) systems.
The State Administration of Foreign Exchange will continue to deepen the pilot program of macro-prudential management of foreign debt and choose the opportunity to carry out full-scale macro-prudential management reform of foreign debt; study and promote the unification of cross-border guarantee management policies in domestic and foreign currencies, moderately liberalize reform policies such as domestic institutions' external transfer of creditor's rights financial assets; further regulate non-governmental organizations.
Management of banking and financial institutions, etc.
The latest assessment shows that among the 40 sub-items controlled by the International Monetary Fund (IMF) on capital and financial projects, my country has reached 37 sub-items that have reached the level of partial convertibility and above, with a ratio of 92.5%, an increase from the beginning of 2015. 5 percentage points.
Currently, there are only three non-convertible sub-projects left, which are mainly concentrated in the primary issuance and transaction link of the domestic capital market, such as domestic issuance of stocks by non-residents, money market instruments and derivatives business.