Study On China's QFII Supervision And Administration Legal System

Under the backgroud of economic globalization,China entering WTO indicates the securities market of China has stepped into a new development phrase and capital market opening to the outside world has also become an imperative trend.But the securities market is not perfect and the capital market is still not whole open in China.Under this condition, it is a big challenge to the security regulatory authorities to realize the whole opening of capital market.At the same time,some other countries and aeras like Korea and Taiwan adopt a QFII system in the opening of security market and get good results."the temporary means of management of investment of securities within the territory of qualified external institutional investors" which was implemented on December,2002 indicates China has carried out QFII system officially.As a transient policy to open securities market to foreign capital,this is another important measure that realizes the goal of capital market's whole opening.In more than seven years operation,QFII system has absorbed a large amount of foreign capital,improved the supervision efficiency of finance and securities business,brought vigor for the Chinese capital market;improved the investor structure of securities market by increasing percentage of institutional investors;helped building the market atmosphere of the value investment and reason invest and strengthened investment confidence of medium and small investors.Meanwhile,it also prompts listed companies to actively enhance their corporate administrative structure,enhances actual strength and improves operation effects.While QFII system makes big achievements,lots of drawbacks appears. Lacking of supervision is the first to attract attention.So authorities issued the new"management method of investment securities within he territory of qualified external institutional investors" which amended relevant orders of QFII system and perfect the supervision of QFII.But we should not ignore its downsides and problems appearing in course of its implementation.So analyzing development of QFII system in our country in recent years,comparing and studying successful experiences of other countries and aeras have important theoretic and practical meaning to perfect our supervision system of QFII.This paper is divided into four parts mainly.Foreword is the summary of QFII Supervision And Adminstration Legal System,in which the author introduces the basic things of QFII Supervision And Adminstration Legal System to expect that there is a approximately understand to it and lay the foundation for other parts of writing.The second part introduces the present situation and challenge of our QFII Supervision And Adminstration Legal System.The author begins from supervision pattern,supervision subject, supervision content and supervision mode,analyze the present situation and challenge of our QFII Supervision And Adminstration Legal System.The third part mainly talks about QFII systems of other new developing market cuontries,compares the differences between Taiwan QFII system,Korea QFII system and India QFII system.Through the comparison and study,the author makes a summary of problems which need to be paid attention to in the reform of our QFII Supervision And Adminstration Legal System.The last part brings up the suggestion about improving our QFII Supervision And Adminstration Legal System which include changing supervision idea and patteren,perfecting supervision subject,expanding supervision mode,enhancing foreign supervision and adjusting accounting norms.