Research On The Influence Of QFⅡ's Introduction On China's Security Market And Related Financial Circumstance

QFII institution is the transitional measurement for a country or a region to open up its capital market. In order to improve China's security market's development, QFII institution was introduced to China in 2002.We start this dissertation from analyzing Taiwan's QFII institution, through comparing China's financial circumstance with Taiwan region's, we find the feasibility and reasonability of comparing two institutions, we also analyze the effect QFII will bring to China's RMB's exchange rate and the development of China's security market, presently QFII won't affect RMB's exchange rate, but we should pay attention to the capital flow's influence mechanism for the exchange rate. QFII bring capital and value-oriented investment opinion, but it may also enlarge the fluctuation of the security market.The introduction of QFII is a systemic project, China should take the stable pace in opening up its capital market. In order to improve China's security market's development and keep related financial circumstance stable, the government should strengthen the liberation of exchange rate and interest rate governing, improve the construction of security market's law and so on.