Analysis Of China QDII Situation And Research On Its Development Mechanism

The QDII(Qualified Domestic Institutional Investor) was firstly proposed by the Hong Kong government departments, just like the CDR (China Depository Share), QFII (Qualified Foreign Institutional -Investor), which can help the domestic investors invest in overseas capital markets.China's economic development accelerated in recent years, the international balance of payments surplus continued, resulting in the accelerated growth of foreign exchange reserve accumulation. In this context, the QDII appears. The direct purpose is to further open the capital account, in order to create more demand for foreign exchange, balance and market-oriented the RMB exchange rate, and encourages more domestic enterprises to go abroad, so as to reduce trade surplus and the capital account surplus. In short, the QDII make domestic investors to participate directly in foreign markets, and share the global market gains.So far, it has gone through more than a year and seven months. QDII reflected its important role, but there were also some problems. This paper will have these issues further analyzed. It gives China's securities market and even the entire consumer market what kind of benefits and risks in the end and whether it have played a role in triaging funds are the focus of this paper. In this paper, the scope of the study include: Explain the connotation of QDII system, and presents the background of QDII system and the importance of QDII; Analyze the current situation from QDII approval and sales of QDII; The positive significance and risks of QDII, both in theoretical and empirical ways; Use specific means to find out the empirical meaning of QDII on China's capital market; Forward some suggestions on the basis of the above analysis. In this paper, I used a variety of research methods in order to obtain scientific and accurate conclusion of the study. Such as the empirical part, is mainly based on the changes of some index data including the data before the launch of QDII and after. Then, use the statistical analysis system to figure out the changes of correlation coefficient between the domestic market and the Hong Kong market. The result is that QDII indeed strengthen China's domestic market and Hong Kong's market's relevance. In a certain extent, QDII achieved the funds diversion goals and satisfied domestic investors' desire of investing abroad.Of course, QDII is a new thing relatively. We must admit that to judge that QDII is good or bad for our country may be too premature now, because all have not yet settled. This article is only for the performance of my own views on this stage of QDII. This system needs to be further discussed.