Study On The Development Of The Qualified Domestic Institutional Investor's Mechanism In Our Country

In the first half of 2001, the special government of Hongkong suggested that the mainland of China should set up the qualified domestic institutional investor mechanism in order to attract the idle fund of residents in the mainland of China to support the economy of Hongkong which has been going downhill constantly since the Asian financial crisis.What is called qualified domestic institutional investor mechanism? It is a mechanism in the country whose capital market is not completely open which permits the national residents and enterprises invest in the foreign capital market through its approved financial institutions that is not a bank. At present , the study of the theory circles on QDII mechanism is mostly based on the view that our country is short of capital and the export of capital caused by QDII mechanism is contradictory to the policy that our country need attract foreign capital, they think it is too early for our country to set up the QDII mechanism and to research it deeply, This kind of view causes the study on QDII mechanism at present is still not deep enough, the meaning of QDII mechanism is not understood enough, the feasibility, economic influence of the mechanism and how to take precautions against the operating risk of the mechanism etc are not understood clearly enough, the destination of the text just is to counteract this weakness. The study on QDII in this text is based on that our country has appeared relative surplus of capital, it thinks that the domestic residents and enterprises have already saved the comparatively abundant money- capital and the relative surplus of capital has appeared in our country , thus producing the strong hope of external investment, Our country has cultivated one batch of institutional investors which can act for the domestic residents to invest in the external capital market. The scale of foreign direct investment is not big, it is difficult to meet the residents' hope of external investment , so ourcountry should develop foreign indirect investment . The item of capital should not be open totally at present, Residents are forbidden invest in the external financial market freely, so the government should set up one mechanism that not only can accord with currency principle of controlling , but also can dredge the channel through which our domestic residents can invest in foreign capital market. At the same time, the text has carried such questions as tackling the challenge of the financial and economic globalization and the capital going abroad to share the interest of the free flowing of the international capital, etc on deeper research, its purpose lies in finding the inherent logic relation between domestic export of capital and international capital circulation trend. The conclusion of the text is: it is essential and feasible to set up QDII mechanism; the negative effect on the economy can be avoided by a series of tactics.