The essence of QFII system is a creative capital control. Under this mechanism, anyone who intends to invest in the domestic capital market must buy and sell securities through qualified institutions, so that the government can carry out foreign exchange supervision and macro-control, with the aim of reducing the impact of capital flows, especially short-term "hot money", on the domestic economy and the securities market. 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.
Next, let's take a look at the characteristics of QFII system: First, China has bypassed the stage of setting up "overseas funds" or "open international trust funds" and directly introduced the leap-forward development of QFII system in one step. Secondly, the scope of QFII in China is relatively broad, which gives overseas investors more autonomy, and requires higher indicators such as the amount of registered capital, financial status and operating period. Third, with the rapid appreciation of RMB, QFII is ready to move.
Having said that, is it easy to invest in QFII? Actually, it is not. This requires many conditions. The core is that it should not be short-term speculation, but should have the nature of 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.