Qfii And Improve Corporate International Financing Capacity

Since the third quarter of 2002, our securities department begins to discuss introducing QFII to our A stock market. It seems that QFII is just before the threshold. On the other hand, there are two institutional difficulties that have puzzled our stock market for a long time. First is we have not large institutional investor investing on the long term. Second is our listed company have not built corporate governance system in practice. The two problems restrict our stock market's financing ability.This paper tries to combine introducing QFII to our country to enhancing our listed company's corporate governance system, and explores how the interactions between them affect our country' s ability attracting foreign capital. At last it will give some policy advices.Chapter Ⅰ starts from the generalizing of global capital flow in the past years. Following that it continues analyses some questions appearing in our policy to attracting foreign capital and draw a conclusion that enhancing corporate governance of our company is precondition to keep our attraction to foreign capital.Chapter Ⅱ introduces the concept and classification of institutional investor, and the meaning of introducing the QFII to our country. Furthermore, this chapter explores the significance of QFII to attracting foreign investment, and some factor impeding the implement of QFII in our country.Chapter Ⅲ bases it' argumentation on summarizing the literatures about corporate governance and Institutional Investors. First thesis is the incentive and difficulties that Institutional Investors had intervening in corporate governance of company. Second thesis is the meaning and evaluation of Corporate Decision Performance and Corporate governance. And last one, what is the relationship between them.Chapter Ⅳ is the innovation of this paper. On the base of the analysis of the three chapters above, it summarizes the concept of international financing competence. More specifically, this chapter investigates whether the market and group-based corporate governance systems are converging in practice toward atheoretical convergence model with the key distinguishing feature of the coexistence of an active market for corporate control and direct monitoring by large shareholders. So it point out the future direction of the corporate governance of our country, and concluded that developing to the convergence model is the only wayChapter Ⅴ summarizes all this paper. And it suggests some advises about three topics, they are introducing QFII to our country; improving the corporate governance of our listed company and enhancing our country' s international financing competence. The conclusion that the good interaction between the former two factors is the key of the latter factor differentiates this paper from others.