| Brought forward by the financial bureau of Hong Kong for the first time, Qualified Domestic Institutional Investor (QDⅡ) is similar to QFⅡ (Qualified Foreign Institutional Investor) and CDR (China Depository Share). It is convenient to the capital market in Mainland China for external investment under the current environment that foreign exchange is being regulated in Mainland China. That is to say, investors in China may invest to oversea capital market under the condition that the capital account of China hasn’t been opened fully. Although the economy growth rate of China has been initiatively decelerated by Chinese government to adjust economy structure in recent years, the international payment surplus has remained for nearly ten years and the accumulated foreign reserve has gown upward for years. Under such background, the formal launching of QDII system is mainly aimed at gaining substantial improvement in opening capital account and thus creating more demands for foreign change so that RMB tends more stable, more market-oriented and balanced relative to international exchange rate. Meanwhile, more domestic enterprises will be encouraged abroad from China, which will further decrease trade surplus and capital account surplus. The most direct advantage of QDⅡ is that domestic investors may indirectly or directly participate into foreign capital market through such system and then are rewarded with investment returning rate of global capital market. In recent years, great pressure is exposed on the outflow of China capital due to huge amount of foreign exchange and ever growing expectation on RMB appreciation. It is necessary for Chinese government to set up a kind of system where investment channel is exposed to initiative management so as to guide the outflow of such part of funds. As income of domestic people keeps rising and demands for investment to foreign exchange market go up, regulation on capital account tends to be relaxed. QDII plays a positive role in these angles.Based on theories of opening capital market and practices, this paper deeply argues the implication, operation principle, background and significance of QDⅡ, and summarizes various risks exposed by QDⅡ when investing to overseas market, and corresponding risk measurement and appraisal methods by theory analysis and case analysis together. Additionally, the risk management methods in QDⅡ investment are deeply and systematically researched from the aspects of market correlation degree, asset allocation, risk monitoring and hedging strategy. Favorable investment achievement will thus be gained by international assets allocation and derivatives investment at the same time of stabilizing investment risks. Additionally, internal risk management mechanism is also discussed in this paper.According to the logic of theory, case analysis and countermeasure discussion, this paper is composed of the following eight chapters. After the introduction of the background to select the theme of this paper and related research significance, basic concept of QDⅡ, the defining of risk mechanism and management, the review of domestic and foreign related literature as well as the research though and methods in Chapter one, Chapter two elaborates the theory base and background of QDⅡ system and compares related practices internationally, including the operating principle of QDⅡ system, theoretical base to implement QDⅡ system, the background when QDⅡ system was introduced into Chinese capital market as well as the comparison of QDⅡ systems introduced by different countries(regions). Chapter three mainly analyzes the milestones of QDⅡ policies, the development courses of QDⅡ system, QDⅡ development status, and discusses the investment style of China QDⅡ, reasons for the failures of QDII funds as well as the governance measures for QDⅡ funds. Chapter four argues the affect of QDⅡ system on macro economy and the positive and negative affect of QDII system on China securities market. Chapter five, based on the theory research of risk management, completely sets forth how to identify different risks in international management and how to apply risk models to control different types of risks from the aspects of market risk, exchange rate risk, state risk and credit risk, etc. With the application of improved asset portfolio construction model, Chapter six elaborates that investment diversification may substantially diverse risks and improve the earning rate of assets portfolio under the condition of international assets allocation. Meanwhile, based on the influence of RMB appreciation on the return of QDII investors and aimed at foreign exchange risk faced by domestic funds management in the time of QDⅡ overseas investment, Chapter six additionally proposes to hedge risks with derivative instruments. By analyzing cases of banks and funds management companies, Chapter seven discusses problems found currently in the development course of QDⅡ businesses and provides countermeasures. Chapter eight puts forward thought to establish and perfect internal risk control mechanism of QDⅡ, which may be referred by domestic QDII managers for oversea investment management and subsequent product development.Finally, as a kind of innovation in the financial field China, QDⅡ, by virtues of its series of advantages, is sure to be trend of oversea investment of Chinese enterprises. In order to better improve the risk management ability and investment earning ability of QDⅡ in oversea market, this paper views that various types of market risks should be accurately identified in the aspect of market risk management and internal control mechanism, risk monitoring and forecasting system would be established for reasonable exchange rate risk management. Besides, assets should be allocated internationally in appropriate time so as to disperse risks and gain earnings from global, set up and perfect internal control.
|
PDF Full Text Request