Preliminary Exploration On The Legal System Of Supervision On Qualified Domestic Institutional Investors

With rapid development of our economy, more and more investors want to share profits from overseas capital market.As China's capital account has't opened,internal investors cannot invest directly in overseas capital market. To solve such problems, our government announced the QDII scheme, opening more foreign markets to Chinese investors, allowing Chinese institutions and residents to entrust Chinese commercial banks to invest in financial products overseas. However, risk involved in QDII products is very high. Espacially after the global financial crisis caused by subprime crisis from Amercia, investors who bought QDII products suffered a lot,which reveals many inborn defects in legal system of regulations on QDII scheme.This paper analyses operation model, legal nature and operational state of QDII scheme, expatiates theory foundation of legal system of regulations on QDII, and puts forward some improvement measures from macroscopic aspect and microscopic aspect.In Charpter 1, Firstly, the Author defines conception of QDII, state operation model of five kinds of QDII existing in domestic market;Secondly, the Author thinks QDII contract belonging to financial fiscal management contract, identifies the legal nature of QDII contract from the pros and cons, and considers the QDII contract as trust nature;Thirdly, the Author states quantity, distribution and investment quota awarded by Administration of Foreign Exchange of QDII in domestic market, and presents earnings and deficit situation of home QDII product.In Charpter 2, the Author explores ideal values of QDII scheme and analyses actual risk implied in QDII product,then states the necessity of supervision on QDII. Based on this, the Author makes some further analysis of theoretical basis of supervision on QDII, including economic theory and legal theory.In Charpter 3, the Author states present legal system of supervision on QDII,which is managed and supervised respectively and characterized with institutional supervision.After analysing concrete measures of supervision on QDII,the Author reveals drawbacks in present supervision on QDII. For example, the law system is still imperfect; the implementation of the sub-sector regulatory model has their limitations; the information disclosure rules have many shortcomings; the laws regulating custodian need improving; the perfection of investor protection system is promptly needed and international inspect cooperation requires enhancing, etc. In Charpter 4, Based on the former analysis, the Author puts forward the totally thinking of improving effectiveness of supervision on QDII. From a macroscopical viewpoint, the supervisory notions should be innovated and the legal system should be perfect. From a microcosmic viewpoint, the detailed system and rule concerning information disclosure, custodian, investor's protection and international inspect cooperation should be developed.