QDII System And Financial Regulating

Following the human financial and economical development history , financial regulating is always a new topic either in theory or in the practice. In 20th century, every financial crisis will destroy the fortune which was created and accumulated by so many efforts and for a long time. The innovation and development of financial organizations satisfy people'desire for wealth, in the mean time the financial organizations want to break through the regulating. Financial organizations and financial regulating organizations are gambling all the time. Once financial regulating organizations loosen the strength of regulating, financial crisis maybe have midwifery. The economy will fall into the difficult position once again. Because the regulating always appear afterwards, the evolution and vicissitude path of 20th century financial regulating theories and the practices still was:"The crisis - regulating - finance innovation– relaxing the regulating - crisis– regulating again- innovating again - relaxing again". The human history stepped into the 21st century. It is a new eras, because of the economical globalization and the economy financed, humanity's financial transaction custom has changed greatly. As big as a country and an enterprise or as slightly as a family and an individual, all need the financial organizations provide service for development, production, life and value rise. Therefore the financial organizations are playing an indispensable role in the modern economy. After entering into WTO, our country's finance industry welcomes the significant opportunity while have to face the huge challenge. If we think the 20th century finances crisis is limited in the seal scope, then in globalization condition, this kind"infection"will manifest suddenly in the global scope. The new economy and the financial environment request us to have to get rid of the path and the circulation of 20th century finances regulating, we must seek a positive, anticipatory and preventive regulating path and discuss the related theories. Such international and domestic background request us to pay attention to the new situation, the new question, the new contradictory and the new tendency in financial and economical domain.On April 13, 2006, the People's Bank of China had issued"the People's Bank of China pronouncement (2006) 5th", in which stipulated the investment direction of QDII system and the operation method of inland bank acting as an agent to finance overseas. This symbolized QDII system officially appearance. QDII system namely Qualified Domestic Institutional Investors system, is same with QFII system, QDII system essentially is one kind of capital transnational arrangement, is the specific product of Chinese capital market development, is an important link between China's capital market and the international capital market and is an important way for countries which haven't open capital markets totally to go into international capital market. QDII system in China is a new system and put forward a series of challenges and questions for Chinese financial regulating, especially for Chinese finance regulating in opening condition.This article attempted to band QDII system and financial regulating, especially financial regulating in opening condition together. The first aim is to clear about the problems in current our country finance regulating system and provide more ponders and suggestion for Chinese financial regulating in opening condition. The second aim is to know thoroughly QDII system. In analysis the article will profit from successful national and the local experiences. Because the content of financial regulating various and at present in theoretically also doesn't have a uniform conclusion, this article only attempts to unify the QDII system and the financial regulating in several basic questions .This article altogether divides into five parts, first part is introductory remark and the second to the fifth part is the main text.The first part includes topic background, research significance, research technique and basic train of thoughts. Finally in this part author proposes innovation places in this article: carrying on quite detailed and thorough analyzing to QDII system, discussing several concrete questions in view of the QDII financial regulating, using other country and local experiences for reference, introducing the cases of South Korean and the Taiwan.The second part analyzes the basic questions of finance regulating: First definitude the concept of financial regulating and international regulating, second explains the core condition of financial regulating in the modern economy in addition to the particularity of finance, third giving two models for internationally financial regulating, in the end analyzing the particularity of international regulating.The third part analyzes the basic questions of QDII system. Because the QDII system appears soon and the related material is scattered, the author analyzes the meaning, then tells the coming on, the reasons and affects of coming on, in the end states the operation, the core question of this system and the present situation,.The fourth part unifies the QDII system and financial regulating and selects three concrete questions to analyze. Through the construe of QDII system, we can understand the issues of Chinese finance regulating.The fifth part introduces the experiences of QDII system overseas, selects South Korean and the Taiwan area for comparative analysis, gives the answers of the questions in the fourth part, and analyzes the future of QDII in China. Synthesizing the two national and local experiences, we may obtain following lessons: first we must have the complete legislation guarantee; second we must realize QDII is a dynamic system; third we must pay more attention to the risk of QDII and do well in regulating; fourth we must enhance the regulating level of related organizations; fifth we know the advancement of QDII system as well as the capital market opening should select the pattern of gradual advances. The answers and policies for questions in fourth part are: the regulating goal should practically protect the investor benefit, the regulating principle should refer to all kinds of scientific principles; the regulating mode should profit from other national and local success experiences, the functional regulating idea should be studies; the regulating of risk dodges can implement the comprehensive risk management method; under QDII system the regulating international cooperation needs the collaboration among financial organizations,the metropolitan country regulating authorities and the host country regulating authorities. Finally, the future development of QDII in China will be introduced.