Research On QFII And The Internationalization Of China's Securities Market

Economic globalization has become the trend of world economic development.As a core of economic globalization-financial globalization has increasinglyintensified. Each financial market has become an integral part of international financial market. No country can achieve its own economic development separately. Inevitably, they should actively integrate into the process of financial globalization to promote economic development. In order to conform to the trend of globalization, China has chosen to gradually open its financial market. Besides, as China has entered into WTO, opening the financial market is also a kind of commitments.The opening of securities market is a significant part of a country's financial liberalization. Qualified Foreign Institutional Investor (QFII) is an important measure of the opening of China's securities market. It is a transitionary system. Under this system, China can open the securities market with certain restrictions. With the purpose of offering theoretical explanation for the internationalization of China's securities market and discussing countermeasures combined with the practice, this thesis chooses "QFII and the internationalization of China's securities market" as the research theme.This thesis consists of five chapters. Chapter one is preface. It firstly puts forward the topic, and then it differentiates related terms and introduces research actuality at home and abroad. At last, it displays the research thread and structure. Chapter two discusses the meaning of QFII system, and then elaborates the theoretical basis. In Chapter three, it analyses the implementary process of QFII system and its effectiveness to China's securities market. Chapter four first analyses the motivation of liberalization of securities market, and then it represents the basic form of internationalization of securities market. Furthermore, it proceeds with correlation analysis between QFII system and the internationalization of China's securities market, which gives the reasons that Chinese government adopts the QFII system to propel the internationalization of securities market. Based on this, it generalizes the enlightenments to China through citing examples of opening of securities market, including developed countries and emerging market countries /regions. Chapter five reveals the practical obstacles that block the internationalization of China's securities market, puts forward the patterns and stages, and at last it suggests related countermeasures.This study draws the following conclusions: (1) the impact of QFII system to China's securities market is gradually expanding. The implementation of QFII institution brings positive effectiveness to China's securities market on the scale of capital, investment ideas, the structure of investors etc. (2) The practice of the QFII system produces positive influences to the size of China's securities market, the introduction of QDII system, capital account liberalization etc.; therefore, it is conducive to promoting the internationalization of China's securities market. (3) The opening of China's securities market should be promoted in phases. Currently, China's securities market is at a limited opening stage. It is expected that it will enter into a complete opening stage around 2012.