Countries and regions such as Taiwan, South Korea, India, and Brazil established and implemented this system in the early 1990s.

The QFII system is a transitional system commonly implemented by many countries and regions, especially emerging market economies, to introduce foreign investment to a limited extent and open up the capital market when the currency is not fully convertible and capital projects have not yet been opened.

It allows approved qualified foreign institutional investors (QFII) to remit a certain amount of foreign exchange funds under certain regulations and restrictions, convert them into local currencies, and invest in the local securities market through special accounts under strict supervision and management, and their capital gains,

A market opening model in which dividends, etc. can be converted into foreign exchange remittances after review.

The QFII system essentially imposes certain restrictions on foreign investment entering the domestic securities market.

QDII (Qualified Domestic Institutional Investors) QDII is a mechanism for local investors to invest overseas in countries (regions) where capital accounts are not fully open. Investors must pass this mechanism before they can buy or sell, so that the country can supervise the flow and scale of funds.

QDII can set up a closed-end fund (that is, after the fund matures, the principal and returns can be withdrawn in one go, and cannot be traded during the period), set a maximum term and investment amount, allow investors to subscribe, and the fund manager will be responsible

invest.

The above form allows the Administration of Foreign Exchange to supervise the flow of funds and ensure that funds return to the country.