QDII, the acronym for "Qualified Financial Institutional Investor", refers to the institutional arrangement established in a country under the condition that the RMB capital account is not convertible and the capital market is not open, and approved by the relevant departments of the country, allowing domestic institutions to invest in securities investment business such as stocks and bonds in the overseas capital market in a controlled manner.

The direct purpose of establishing this system is to "further open the capital account to create more foreign exchange demand, make the RMB exchange rate more balanced and market-oriented, and encourage more domestic enterprises to go abroad, thus reducing the trade surplus and capital account surplus", which is directly manifested in allowing domestic investors to directly participate in foreign markets and gain global market benefits.

The content of this article comes from: China Law Publishing House "General Knowledge Series of Legal Life"