Legal analysis: QFII system refers to an open market model that allows qualified foreign institutional investors to remit a certain amount of foreign exchange funds under certain regulations and restrictions, and convert them into local currency, and invest in the local securities market through a strictly supervised special account, and their capital gains and dividends can be converted into foreign exchange remittance after approval. QFII system is a limited transitional system to introduce foreign capital and open the capital market, which has been widely used in some newly industrialized countries and regions and accumulated rich practical experience.

Legal basis: Foreign Investment Law of People's Republic of China (PRC).

Article 1 This Law is formulated in accordance with the Constitution in order to further expand opening up, actively promote foreign investment, protect the legitimate rights and interests of foreign investment, standardize the management of foreign investment, promote the formation of a new pattern of all-round opening up and promote the healthy development of the socialist market economy.

Article 2 This Law applies to foreign investment in People's Republic of China (PRC). Foreign investment as mentioned in this Law refers to the investment activities directly or indirectly carried out by foreign natural persons, enterprises or other organizations (hereinafter referred to as foreign investors) in China, including the following situations: (1) Foreign investors set up foreign-invested enterprises in China alone or jointly with other investors; (two) foreign investors in China to obtain shares, equity, property shares or other similar rights and interests of enterprises; (3) Foreign investors invest in new projects in China alone or jointly with other investors; (4) Other investment methods stipulated by laws, administrative regulations or the State Council. Foreign-invested enterprises mentioned in this Law refer to enterprises wholly or partially invested by foreign investors and incorporated in China according to the laws of China.