The Research On The Problems And Solutions In The Implementation Of China's QDII System

Based on the capital market liberalization theory in the beginning, the paper goes into the details of the QDII(Qualified Domestic Institutional Investors) system's background and the significance to financial market of China. In the second part, the paper analizes relative theory. The third part makes a comparative study of the international practice of the QDII system and gets the inspiration to China's conditions. In the fourth part, the paper focuses on in-depth analysis of current situation of China QDII system and product performance, based on QDII system in the course of development, the paper describes the institutional approval of QDII, product issuance, investment tools, and QDII business models and processes. The paper selects six indicators which includes return on assets, stock concentration, industry concentration, the top ten Awkwardness accounting, investment regional concentration, and Sharpe to measure performance from the perspective of QDII fund asset allocation. This fifth part of the paper in-depth analysizes QDII system problems and risks in the process of development. Finally, the paper proposes solutions to improve the QDII system. From empirical analysis, we conclude that QDII can disperse risks through allocating the resources in different capital markets, get a higher rate of investment returning. As a kind of configuration tool, QDII more emphasizes the function of configuration, as the government's control tools, more important significance lies in "channels" .For developing countries, especially in the financial markets which are not healthy, the capital market's opening time, peed and the degree are directly related to the country's overall conomic sustainable development. QDII system is not only an innovation but a reflection of China's capital market's reform and opening.