Research On Risk Evaluation Of China's Institutional Investors In Foreign Portfolio Investment

With the development of QDII, the opening of China's capital market enters a new stage. However, the institutional investors including QDII and Sovereign Wealth Fund suffer great losses during the Foreign Portfolio Investment (FPI) practice. So studying on the risk of FPI is urgent.The paper mainly contains three parts.First, the paper divides China's FPI practice into two phases and domestic institutional investors into three categories including QDII, government investors and some special companies. The paper summarizes the traits of different QDII from three aspects including the kind of investors, the target markets and financial instruments, and then the practice of Sovereign Wealth Fund and some special companies. Besides, the paper discusses the positive impact and the risk of China's FPI.Second, from the perspective of institutional investors, the paper makes a study on risk identification and classification and establishes the index system of all risks. Each kind of risk has its own concept and impact way. The paper devotes to analyse them clearly. On the base of these, AHP and fuzzy math theory are used to establish a comprehensive model to evaluate the risk. The paper selects ChinaAMC Global Equity select QDII to develop empirical studies and the result shows that the Fund faces a biggish risk.Finally, base on the domestic reality, the paper brings forward several proposes and countermeasures on both macro and micro levels to prevent and control the risk of FPI.Totally, the research combines qualitative and quantitative analysis, and quotes lots of cases and latest data.