The Research On The Challenge And Echo Of QFII To Chinese Security Supervision Legal System

As the reforming and opening, China has become one of the strongest economic countries. However, for a long time,the form of making use of foreign capital has been limited in direct investment, the size and the form of foreign capital investing on capital market has been very short. Therefore, since 2002, China has carried QFII, and has opened the capital market to qualified foreign institutional investors under some conditions. QFII is a temporary institution and financial reforming limit to attract foreign capital and open capital market. QFII has a great effect on quickening the capital market open and promoting economic and finance reform.The core goal of carrying QFII is to encourage middle-long term investment, prevent the impact of speculating capital, open the capital market conditionally and carry out money exchanging limitedly. As a result, to qualified foreign institutional investors, there are rigid rules about market entry, operation and exiting, and a series of laws to execute hard supervision, which are to keep capital market stead and prevent the impact of speculating capital. However, from the view of the five years, in which China has carried QFII, this finance reforming is a challenge to the idea of security supervision, the information disclosure of stock market, the union supervision of multi-financial group, finance supervision power. Furthermore, because of the visual defects of correlated laws about QFII, QFII has not made its greatest progress.To make great use of QFII to quicken economic development, it is high time to make timely and effective echo to these challenges. The supervision institution must improve the supervision system to QFII. Firstly, it is for supervision institution to update the idea of security supervision, form the idea of risk supervision, enhance efficiency supervision and set up self-discipline supervision of securities. Secondly, it is to improve the supervision system on information disclosure, which is the soul of stock market, and if the information disclosure is not legal norm, QFII should lose its effect. Thirdly, it is to carry out union supervision to finance system. At last, it is to improve the global communication and co-operation in finance supervision.