The Practice Of The Qdii System In China: Achievements, Difficulties And Countermeasures

Qualified Domestic Institutional Investor (QDII) system, on the background of capital item not yet opened, which is the system that the domestic finance investment institutions are permitted to invest in the foreign capital market, is a feasible approach, to optimize the asset allocation in the securities business using the foreign capital market. In the 1990's, some emerging markets opened their securities markets by QDII. Based on the experience from these markets and more research, China put the QDII system into practice in current form in April, 2006.This thesis is to analyze the QDII system comprehensively and to explore the QDII practice significantly in China. Firstly, I summarize the QDII system, to introduce the definition, classification, and core issues to figure out how the QDII system works). And I compare the QDII system in South Korea, Taiwan and Chile, which are as important examples and reference in China. Secondly, the thesis shows the significance, effect and effort of QDII system which is brought out, developed and practiced in China. On the basic of analysis on the necessity and feasibility of China QDII system, the development and status quo of QDII system in China is settled and concluded, and the achievement of China QDII system is analyzed and affirmed. Thirdly, I analyze 4 QDII products from bank and fund, which can represent the whole QDII development in China. Last but not the least, I presents the problems occurred during the development of QDII system in China. In addition, I reveal the bottleneck of its development in China. Furthermore, I provide some suggestions and possible solutions which may be helpful for the China QDII system.By the research and analysis, I believe that the QDII system is not only an innovation, but also a wise choice for China to reform and open the capital market. I also believe that during the practice of QDII and the progress of opening the capital market, the discreet, firm and positive principles should be kept on, which will provide an impetus to a stable-developing capital market in long term in China.