Qfii In China's Securities Market Practice And Impact Study

QFII mechanism is a kind of system to the internationalization of domestic securities market. In China, QFII was introduced in late of 2002. In the middle of 2003, UBS got the first QFII license and did its first order. Since that, more and more foreign investors want to apply for QFII licenses and investment quota. Till the Oct 2007, 52 QFIIs had got the licenses and the accumulated approved investment quota has reached to USD 9. 995bln. Shang, Fu lin, chairman of CSRC(China Securities Regulatory Committee) ,also announced to increase the QFII investment quota to USD 30bln till the end of 2007. This makes QFII to become a very important role in China stock market.This thesis would focus on systematic research on current QFII mechanism. It would try to do the overall evaluation of current QFII mechanism in China, compared to the QFII mechanisms applied in other countries. Besides, the author of this thesis would also try to answer the following questions: for example, what are the investment style of QFIIs and how are their investment performance? What influences did QFIIs cause to the stock market, listed companies and the supervision mechanism of the government. Finally, the author also discusses the defaults of current QFII mechanism and tries to offer suggestions to perfect the mechanism.The thesis is divided into eight chapters. In Chi, the author describes the theoretical bases of QFII mechanism and the reviews of related research papers. In Ch2, the current overall QFII mechanism is described and is evaluated compared to QFII mechanism in other countries. In Ch3, QFIIs' investments styles and investment performance were examined. Besides, the change of QFIIs' investment styles before and after state share reform is also discussed. In Ch4, test the short-term effect and long term effect to the stock market under QFII mechanism. In Ch5, the author tries to evaluate the effect of QFIIs on listed companies, including effect on cooperate governance of listed companies, effect on information disclosure of listed companies, effect on financial tools innovation of listed companies and the effect on the form of value management of listed companies. In Ch6, the QFIIs' effects on the supervision of the authorities, investors' protection and foreign exchange market are discussed. In the final chapter, the author would point out the default of current QFII mechanism and tries to offer some suggestions to perfect the QFII mechanism.