Study On QDII System Of China

Based on the capital market liberalization theory and practice, in the beginning, the author goes into the details of the QDII (Qualified Domestic Institutional Investors) system's define and the significance to financial market of China. In the second part, the author analysis the international practice of the QDII system comparatively to get the inspiration to China's economic reform. In the third part, the author analysis the QDII system's impact on China's economic, mainly concentrated in the securities market, foreign exchange markets, banking and insurance industry, and so on. In the fourth part, at the view of assets diversified international, the author studies the QDII system possible risks and benefits though a quantitative analysis. Finally, the author gives the advices on QDII system in the future prospects for the development of the prospects. For developing countries, especially in the financial markets is not in very healthy state, the opening time, speed and the degree of the capital market is directly related to the country's overall economic development. QDII system is not only an innovation but is a reflection of China's capital market reform and opening. But the QDII system even the entire capital market liberalization process should be implemented in prudent, firm and positive principles.