QDII (qualified domestic institutional investor) allows mainland investors to invest in overseas capital markets when the capital account is not fully open.

QDII means that mainland residents will be allowed to invest in overseas capital markets with foreign exchange, and QDII will be implemented through institutions recognized by the China government. Experts believe that mainland residents are most likely to invest foreign currency in Hong Kong stocks through fund management companies.

QDII was first proposed by the government departments of the Hong Kong Special Administrative Region. Like CDR (Depositary Receipt) and QFII (Foreign Institutional Investor Mechanism), QDII will be an expedient measure for the mainland capital market to open to the outside world under foreign exchange control. Moreover, because RMB is not freely convertible, CDR and FDII are technically quite difficult. Comparatively speaking, the institutional obstacles of QDII are much smaller.

QDII is an investment system. 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, encourage more domestic enterprises to go abroad, and thus reduce 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.

Another system corresponding to QDII is called QFII. QFII, namely Qualified Foreign Institutional Investor, literally translates as Qualified Foreign Institutional Investor. The biggest difference between QDII and QFII lies in the opposition between investors and participating funds. From China's standpoint, QFII is an investor who is issued in countries outside China and participates in China's capital, bonds or foreign exchange market through qualified channels, while QDII is an investor who is issued in China and participates in China's capital, bonds or foreign exchange market through qualified channels.

QDII system was first proposed by Hong Kong government departments. Like CDR and QFII, it will be an expedient measure to open the mainland capital market under foreign exchange control, so as to allow domestic investors to invest in overseas capital markets when capital projects are not fully opened.

QDII means that mainland residents will be allowed to use foreign exchange to invest in overseas capital markets, that is, to invest in the capital markets of Hong Kong and other countries. 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.

On February 9, 2007, Bank of China announced on its website that its first QDII product, Silver Dollar Enhanced Cash Management (R), had less than 200 million copies for 20 consecutive working days since June 65438+ 10/2, 2007, which met the product termination conditions stipulated in the product manual. The administrator announced the termination of the product, starting from February 12, 2007. Unreredeemed investors will participate in the final liquidation. The accelerated appreciation of RMB leads to low product yield, which is the fundamental reason why Bank of China's enhanced cash management (R) was forced to terminate.

At the same time, another QDII product that similar funds can purchase and redeem at any time, China Merchants Bank Global Select Money Market Fund, has been put into operation since June 2006 1 65438+1October1day, with an average annualized rate of return of 4.82% in US dollars. That is to say, in the three days ending February 1 1, if the income is converted into US dollars, the income obtained by investors is about 1.36%. However, during this period, the exchange rate of USD against RMB dropped from 7.8785 to 7.7577 in February 1 1.

The renminbi then broke through the bottom line again and again, hitting record lows. According to the relevant provisions of QDII, investors who invest in QDII products in RMB must convert their RMB into US dollars to participate. In other words, even though QDII investors can still enjoy overseas investment income, the appreciation of RMB will push them to an increasingly embarrassing situation. Since the investment principal and income of US dollars will eventually be converted into RMB after maturity, the appreciation of RMB will be deducted from the actual rate of return.

1。 QDII is an overseas wealth management service initiated by China Bank. As far as I know, ICBC and China Merchants Bank have also implemented this service.

2。 Banks with QDII qualifications can raise funds from domestic investors, that is, sign a "financial management contract" with customers, and the bank will engage in overseas capital operation instead of customers, and agree to give customers certain income.

3。 The benefits of China investors can be seen from this:

Domestic investors in China are not qualified for QDII, and at the same time, due to relatively weak capital, they cannot engage in overseas investment, thus losing this part of the profit space. The implementation of QDII banking policy makes up for this defect, so that customers can earn profits from overseas capital markets, and banks can also enhance their market competitiveness in the international market. As the saying goes, "when people gather firewood, the flames are high." This move will further promote China's domestic capital to go overseas, which can be said to be another leap in China's economic development.

QFII

QFII is short for qualified foreign institutional investors, and QFII mechanism refers to the recognition system for overseas professional investment institutions to invest in China. QFII system, as a transitional institutional arrangement, is a special channel to realize the orderly and steady opening of the securities market in countries and regions where the capital account has not been fully opened. The experience of markets including South Korea, Taiwan Province Province, India and Brazil shows that QFII is a steady way to introduce foreign capital through the capital market when the currency is not freely convertible. Under this system, QFII will be allowed to remit a certain amount of foreign exchange funds and convert them into local currency, and invest in the local securities market through a special account under strict supervision and management. All kinds of capital gains, including dividends, bid-ask spreads, etc., can be converted into foreign exchange for remittance after examination, which is actually a limited opening of the domestic securities market to foreign investors.

Developed countries don't need to introduce QFII because their currencies are freely convertible. Therefore, this system is only the successful experience of a few developing countries. Whether QFII can be successfully implemented depends on whether the overall economy is attractive and whether there are suitable investment tools and securities markets.

What kind of overseas institutional investors are qualified? There are many conditions, the core of which is that it should not be short-term speculation, but should be medium-and long-term investment. The experience of Taiwan Province Province and South Korea shows that after the introduction of QFII mechanism, the rational investment concept, which is keen on investing in blue-chip stocks, paying attention to dividends of listed companies and paying attention to the long-term development of enterprises, has become popular, and speculation has decreased, which has reduced the huge fluctuation of the market to some extent. Therefore, introducing QFII mechanism to attract qualified foreign institutional investors will help to further expand the ranks of institutional investors; We can also learn from foreign mature investment concepts to promote the effective allocation of resources; At the same time, promote listed companies to improve corporate governance and accelerate the convergence to the modern enterprise system.

QFII is a transitional system for a country to introduce foreign capital and open its capital market to a limited extent when its currency is not fully convertible and its capital account is not yet open. This system requires foreign investors to meet certain conditions if they want to enter a country's securities market, remit a certain amount of foreign exchange funds after approval by the relevant departments of the country, and convert them into local currency through a special account under strict supervision to invest in the local securities market.

The birth process of QFII

QFII is short for Qualified Foreign Institutional Investor, namely "Qualified Foreign Institutional Investor". 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 special accounts under strict supervision, and their capital gains and dividends can be converted into foreign exchange remittance after being audited. This is a transitional system that introduces foreign capital and opens the capital market in a limited way. In some countries and regions, especially emerging market economy countries and regions, because the currency has not been fully convertible and the capital account has not been opened, the intervention of foreign capital may have a greater negative impact on their securities markets.

Through QFII system, the management can restrict and guide the entry of foreign capital, make it adapt to the development of domestic economy and securities market, control the influence of foreign capital on the independence of domestic economy, curb the impact of speculative hot money from abroad on domestic economy, promote the internationalization of capital market and promote the healthy development of capital market.

After more than ten years of development, the overall scale, function and efficiency of China's securities market have been greatly improved, and it has become one of the largest and most dynamic securities markets in the Asia-Pacific region. It should be said that the time is ripe to introduce QFII system. On the other hand, the proportion of institutional investors in China's securities market is far lower than that in overseas mature markets, which seriously restricts the function of China's securities market. From this perspective, it is quite urgent to introduce QFII.

In this case, since the second half of last year, some experts have suggested that our government introduce QFII system as soon as possible. Since then, the relevant administrative departments have set up a special research group to study this. On June 10 this year, Zhou Xiaochuan, Chairman of China Securities Regulatory Commission, officially talked about QFII when attending the 27th annual meeting of the International Securities Regulatory Commission, and spoke highly of it. On July 18, Shenzhen Stock Exchange held the "Symposium on Introducing Qualified Foreign Institutional Investors". This meeting has solved many technical problems of QFII, which is of great significance for China to introduce QFII mechanism. 165438+1October 5th, the Interim Measures for the Administration of Domestic Securities Investment by Qualified Foreign Institutional Investors was officially promulgated.

QFII

QFII is short for qualified foreign institutional investors, and QFII mechanism refers to the recognition system for overseas professional investment institutions to invest in China. QFII system, as a transitional institutional arrangement, is a special channel to realize the orderly and steady opening of the securities market in countries and regions where the capital account has not been fully opened. The experience of markets including South Korea, Taiwan Province Province, India and Brazil shows that QFII is a steady way to introduce foreign capital through the capital market when the currency is not freely convertible. Under this system, QFII will be allowed to remit a certain amount of foreign exchange funds and convert them into local currency, and invest in the local securities market through a special account under strict supervision and management. All kinds of capital gains, including dividends, bid-ask spreads, etc., can be converted into foreign exchange for remittance after examination, which is actually a limited opening of the domestic securities market to foreign investors.

Developed countries don't need to introduce QFII because their currencies are freely convertible. Therefore, this system is only the successful experience of a few developing countries. Whether QFII can be successfully implemented depends on whether the overall economy is attractive and whether there are suitable investment tools and securities markets.

What kind of overseas institutional investors are qualified? There are many conditions, the core of which is that it should not be short-term speculation, but should be medium-and long-term investment. The experience of Taiwan Province Province and South Korea shows that after the introduction of QFII mechanism, the rational investment concept, which is keen on investing in blue-chip stocks, paying attention to dividends of listed companies and paying attention to the long-term development of enterprises, has become popular, and speculation has decreased, which has reduced the huge fluctuation of the market to some extent. Therefore, introducing QFII mechanism to attract qualified foreign institutional investors will help to further expand the ranks of institutional investors; We can also learn from foreign mature investment concepts to promote the effective allocation of resources; At the same time, promote listed companies to improve corporate governance and accelerate the convergence to the modern enterprise system.

QFII is a transitional system for a country to introduce foreign capital and open its capital market to a limited extent when its currency is not fully convertible and its capital account is not yet open. This system requires foreign investors to meet certain conditions if they want to enter a country's securities market, remit a certain amount of foreign exchange funds after approval by the relevant departments of the country, and convert them into local currency through a special account under strict supervision to invest in the local securities market.

The birth process of QFII

QFII is short for Qualified Foreign Institutional Investor, namely "Qualified Foreign Institutional Investor". 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 special accounts under strict supervision, and their capital gains and dividends can be converted into foreign exchange remittance after being audited. This is a transitional system that introduces foreign capital and opens the capital market in a limited way. In some countries and regions, especially emerging market economy countries and regions, because the currency has not been fully convertible and the capital account has not been opened, the intervention of foreign capital may have a greater negative impact on their securities markets.

Through QFII system, the management can restrict and guide the entry of foreign capital, make it adapt to the development of domestic economy and securities market, control the influence of foreign capital on the independence of domestic economy, curb the impact of speculative hot money from abroad on domestic economy, promote the internationalization of capital market and promote the healthy development of capital market.

After more than ten years of development, the overall scale, function and efficiency of China's securities market have been greatly improved, and it has become one of the largest and most dynamic securities markets in the Asia-Pacific region. It should be said that the time is ripe to introduce QFII system. On the other hand, the proportion of institutional investors in China's securities market is far lower than that in overseas mature markets, which seriously restricts the function of China's securities market. From this perspective, it is quite urgent to introduce QFII.

In this case, since the second half of last year, some experts have suggested that our government introduce QFII system as soon as possible. Since then, the relevant administrative departments have set up a special research group to study this. On June 10 this year, Zhou Xiaochuan, Chairman of China Securities Regulatory Commission, officially talked about QFII when attending the 27th annual meeting of the International Securities Regulatory Commission, and spoke highly of it. On July 18, Shenzhen Stock Exchange held the "Symposium on Introducing Qualified Foreign Institutional Investors". This meeting has solved many technical problems of QFII, which is of great significance for China to introduce QFII mechanism. 165438+1October 5th, the Interim Measures for the Administration of Domestic Securities Investment by Qualified Foreign Institutional Investors was officially promulgated.

QFII

QFII is short for qualified foreign institutional investors, and QFII mechanism refers to the recognition system for overseas professional investment institutions to invest in China. QFII system, as a transitional institutional arrangement, is a special channel to realize the orderly and steady opening of the securities market in countries and regions where the capital account has not been fully opened. The experience of markets including South Korea, Taiwan Province Province, India and Brazil shows that QFII is a steady way to introduce foreign capital through the capital market when the currency is not freely convertible. Under this system, QFII will be allowed to remit a certain amount of foreign exchange funds and convert them into local currency, and invest in the local securities market through a special account under strict supervision and management. All kinds of capital gains, including dividends, bid-ask spreads, etc., can be converted into foreign exchange for remittance after examination, which is actually a limited opening of the domestic securities market to foreign investors.

Developed countries don't need to introduce QFII because their currencies are freely convertible. Therefore, this system is only the successful experience of a few developing countries. Whether QFII can be successfully implemented depends on whether the overall economy is attractive and whether there are suitable investment tools and securities markets.

What kind of overseas institutional investors are qualified? There are many conditions, the core of which is that it should not be short-term speculation, but should be medium-and long-term investment. The experience of Taiwan Province Province and South Korea shows that after the introduction of QFII mechanism, the rational investment concept, which is keen on investing in blue-chip stocks, paying attention to dividends of listed companies and paying attention to the long-term development of enterprises, has become popular, and speculation has decreased, which has reduced the huge fluctuation of the market to some extent. Therefore, introducing QFII mechanism to attract qualified foreign institutional investors will help to further expand the ranks of institutional investors; We can also learn from foreign mature investment concepts to promote the effective allocation of resources; At the same time, promote listed companies to improve corporate governance and accelerate the convergence to the modern enterprise system.

QFII is a transitional system for a country to introduce foreign capital and open its capital market to a limited extent when its currency is not fully convertible and its capital account is not yet open. This system requires foreign investors to meet certain conditions if they want to enter a country's securities market, remit a certain amount of foreign exchange funds after approval by the relevant departments of the country, and convert them into local currency through a special account under strict supervision to invest in the local securities market.

The birth process of QFII

QFII is short for Qualified Foreign Institutional Investor, namely "Qualified Foreign Institutional Investor". 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 special accounts under strict supervision, and their capital gains and dividends can be converted into foreign exchange remittance after being audited. This is a transitional system that introduces foreign capital and opens the capital market in a limited way. In some countries and regions, especially emerging market economy countries and regions, because the currency has not been fully convertible and the capital account has not been opened, the intervention of foreign capital may have a greater negative impact on their securities markets.

Through QFII system, the management can restrict and guide the entry of foreign capital, make it adapt to the development of domestic economy and securities market, control the influence of foreign capital on the independence of domestic economy, curb the impact of speculative hot money from abroad on domestic economy, promote the internationalization of capital market and promote the healthy development of capital market.

After more than ten years of development, the overall scale, function and efficiency of China's securities market have been greatly improved, and it has become one of the largest and most dynamic securities markets in the Asia-Pacific region. It should be said that the time is ripe to introduce QFII system. On the other hand, the proportion of institutional investors in China's securities market is far lower than that in overseas mature markets, which seriously restricts the function of China's securities market. From this perspective, it is quite urgent to introduce QFII.

In this case, since the second half of last year, some experts have suggested that our government introduce QFII system as soon as possible. Since then, the relevant administrative departments have set up a special research group to study this. On June 10 this year, Zhou Xiaochuan, Chairman of China Securities Regulatory Commission, officially talked about QFII when attending the 27th annual meeting of the International Securities Regulatory Commission, and spoke highly of it. On July 18, Shenzhen Stock Exchange held the "Symposium on Introducing Qualified Foreign Institutional Investors". This meeting has solved many technical problems of QFII, which is of great significance for China to introduce QFII mechanism. 165438+1October 5th, the Interim Measures for the Administration of Domestic Securities Investment by Qualified Foreign Institutional Investors was officially promulgated.

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