QF - II System : International Comparison And Realistic Choice Of China

The internationalization of securities markets in the world and China's entry into WTO make it an imperative trend for the opening-up of China's securities market to be gradual wide. But the capital market is still not wide open and the securities market is imperfect in China. Under this circumstance, it is a main problem to keep the securities market steadily while it is opening. At the same time, some developing countries and areas enact a QFII Institutions and get success. Their experiences are worth of studying and using for reference.Since the third quarter of 2002, the China Securities Department begins to discuss introducing QFII to our stock market. After then the disputation of whether to enact the QFII Institution was incessancy. After the QFII Institution was official enacted in Dec. 2002, there was almost no positive response to it. So the disputation reaches to its climax. The assentients insist that the QFII Institution could rectify the defects of the securities market of China and also promote it. The dissenters consider that there were some factors acting as the obstacles to the enaction of QFII Institution.Through theoretic analysis and experiential analysis, combining with the fact of the securities marker of China, this paper illustrate that we should bring QFII Institution into effect and take advantage of it, and give some particular policy advices. It starts from analysis the characteristics of institutional investors and the effect that the developing of institutional investors bring on securities market, both of which consists of the theoretical basis of QFII Institution. Then it mainly introduces the experience of execution QFII Institution in some developing countries and areas, and also points out the references to Us. After that it illustrates the applicability of QFII institution in China, and put forward some factors impeding the enaction of QFII Institution. At last it analysis the content and disadvantage of now-implementing QFII Institution in China, then draw a conclusion that we should confirmedly implement and gradually regulate our QFII Institution, and reform the relative rules at the same time.