Chinese Securities Market Opening And QFII System

Securities market open is the process that securities market of one country enters the system of global securities market and securities market of one country tends towards open from closeness which includes open of securities investment, securities financing and securities service. In 2001 China became the 143rd member of World Trade Organization (WTO) and the step of economic open quickened. So securities market open turns into the necessary trend. QF2 system is a limitary direct open form that regulates application procedure and condition, capital trusteeship and liquidation, financial tools permitted to invest, capital remit and management of QFII etc. So we confirm "Chinese Securities Market Opening and QFII System" as the theme of the paper.Securities market open is a new phenomenon of international finance field since 1970s, which appeared with liberalization of domestic finance that is cored in liberalization of interest rates and liberalization of international finance that includes convertibility of current account and capital account.We put forward a new academic framework that means securities market opening must assure inner and outer equilibrium of financial market and harmony with macro-economic policy. Economic globalization, developments of securities markets of all countries and entering into WTO are macro- backgrounds of Chinese securities market opening. Securities market open can gain advantages and face risks.Chinese securities market began in the earlier 1980s and has gone through 13 years from founding market of B stock. Chinese securities market opening is single-direct, little by little, step by step and non-balanced in character. The facts affect Chinese securities market open include securities market and macro-economy. Implement of QFII system indicates that Chinese securities market opening has entered a new phase. At last we set forth three kinds of open stratagems and five policy advices.