1.QDII fund refers to a securities investment fund established in a country and approved by the relevant departments of the country to engage in securities business such as stocks and bonds in overseas securities markets. Like QFII, it is also a transitional institutional arrangement, allowing domestic investors to invest in overseas securities markets to a limited extent when the currency is not fully convertible and the capital account is not yet open.

2.QDII (Qualification System for Overseas Investment in qualified domestic institutional investor) was first proposed by the Hong Kong government. Like CDR (Depositary Receipt), QFII (Qualification System for Overseas Institutional Investors to Invest in the Mainland) will be an expedient measure to open the mainland capital market to the outside world under foreign exchange control, so as to allow domestic investors to invest in the overseas capital market when the capital account is not fully opened.

3.QDII means that mainland residents will be allowed to invest in overseas capital markets with foreign exchange. At present, QDII means investing in Hong Kong capital markets. QDII can accumulate experience for the orderly opening of China's capital market and play a positive role in cultivating mainland institutional investors. Especially for Hong Kong's capital market, although judging from the capital situation, it may be just a drop in the bucket for the Hong Kong market with a market value of nearly HK$ 3.4 trillion. According to the prediction of relevant experts, if QDII is allowed to be implemented, the funds entering the Hong Kong market in advance will not exceed 5 billion US dollars.