The Evaluation Of QFII's Investment In Chinese A Stock Market

Since the regional economy has been developing quickly and economic globalization has been obvious paced up, the world economy has become into an integrated combination and the regional financial markets have become into an indispensable part of the global financial market. Being a vital segment of the world economy, China's reform and opening drive will enter the globalization trend. In the global context, how to adopt strategies and what measures should we take to improve the globalization of the Chinese securities business is an important problem to be solved.Since QFII was created, it was become the most effective ways to opening up the capital market, and makes the prominent effect to those countries which implementation of QFII. On Sep.1st, 2002, the QFII was official enacted by China Securities Market.QFII system is a mechanism that intends to make a limited restriction during the process of our securities market's opening. QFII system regulates application procedure and condition, capital trusteeship and liquidation, financial tools permitted to invest, capital remit and management of QFII. Under QFII system, any foreign investors must make access to QFII for the securities trading qualification in order to invest to our domestic securities market, for the purpose that our government is easy to carry out foreign currency supervision and macro adjustments and controls.Since QFII's entry in China in 2003 it plays an important role in Chinese capital market. QFII's outstanding performances in A Stock Market have aroused our attention and discussion, and also bring into changes in competition pattern. It's a quite necessary for domestic institution investors to study how to react and expand our force facing this fierce competition. Most of existing articles are academic and qualitative, not quantitative. So this article collected all the open date from Second Quarter of 2004 to Third Quarter of 2006 and wish to portray an integrate image of QFII at most accurate.The present paper can be divided into five parts: The first part makes the brief introduction of QFII system. The second part introduced the experiences of some prospering securities business in some regions and countries, especially in Taiwan and India. The third part talks about the development of QFII system in China. Compared with QFII system in Taiwan and South Korea, for adopting the experiences learned from overseas, the QFII system in mainland is more creative and active in design and Open Course, which will be more attractive for oversea investors. The fourth part is the core of this article and it discussed QFII's performance, strategy of selecting stocks and operation, which is trying to figure out significative conclusions in different angles. The firth part is about the prospect and problem of QFII in China's market.The basic conclusions in this article includes: the return of the QFII's obvious performed better then average return of the stock market. Its estimation on the stock market's movement is comparable exacter than the fund. But its return is not more than the stock fund. QFII hold a large amount stock on industry, manufacturing, public utility, and energy, the amount of which has surpassed the proportion hold by the market. According to the situation, QFII's can react fast and flexibly to the change of China's industry policy and general environment. The stock hold by QFII is composed of long-term investment and short-term investment, which adopted the strategy of investing associated with venturing. In the study on this paper, it is using the basic theory as guidelines, adopts the methods of the determining and quantitative analysis, real example and standardizes analysis and comparative analysis, and pays attention to combine the theory and realistic, these proving methods run through the full text. Especially in chapter three and chapter four, through consulting a large number of materials and data, I use the analytical method of the real example to support and prove the view and conclusion of the thesis effectively.The innovation of this text has the following several respect:First, this article collected all the open date from Second Quarter of 2004 to Third Quarter of 2006 including the earning per share per quarter during the stock was holding by the QFII, the quantity of the stock, the price of the stock at the beginning and the end of quarter, the yield of the stock and respective industries which the stock belong.Second, this article based on the demonstration research from the micro perspective, analysis by synthesis about the QFII's investment strategy in China's stock market. And find out some regularity, some investment methods and conclusions which are worth to read and study. Meanwhile, in the light of the demonstration research results may have some significance and constructive suggestion to domestic investors, which is seldom seen in the previous research.