We are all familiar with funds, but it may be difficult to distinguish some specific categories of funds. For most of us, in fact, some types of funds will not be encountered, but we are all curious. Sometimes when we see some types of funds, we want to understand their concepts, such as: what does QFII fund mean? What kind of fund is QFII? We have prepared relevant contents for your reference.

What does QFII fund mean?

QFII is simply a qualified foreign institutional investor who comes to China to invest in China's securities market after meeting China's regulations and regulatory requirements. Therefore, QFII funds can be understood as foreign capital and institutional foreign capital. QFII is a transitional system to open China's capital market when the currency is not fully convertible and the capital account is not yet open. It can bring a lot of new overseas funds to China's capital market, and also better promote the development of China's capital market towards value investment, which is conducive to the long-term and steady development of China's capital market.

What's the difference between QDII fund and QFII?

Simply put, QDII fund refers to the investment and trading of domestic securities in overseas markets. The practical significance refers to the securities investment fund established in China and approved by the relevant departments to meet the requirements, which can engage in the trading of stocks, bonds and other securities in overseas securities markets. The similarity between QDII funds and QFII lies in the limited degree of market opening when the currency is not fully convertible and the capital account is not yet open. The differences between QDII funds and QFII are mainly reflected in the investment nature, participants, investment scope, settlement methods and laws and regulations.