Research On The Development And Countermeasures Of QFⅡ System In China

After the 1990s in the last century, with the accelerated process of global economic integration, the degree of mutual penetration of world economy has greatly increased. The international capital flows frequently and the barrier to hinder it to play in the role of allocating the global resource has been weakened. The objective situation of the economic globalization calls for every country to take an active part in the international division of labor,to play their comparative advantage, but the economic globalization tend to make the international economics relations more complex and will lead to global economic rules of a rearrangement. The economic rules change on the one hand will promote a country's economy to increase the degree of opening; on the other hand will give the national economy the global influence of various factors, possibility increase the international financial risk. Therefore, to explore a effective model of opening up to ensure the stable development of domestic financial system become the center issue of the development of foreign economic. In this background, Taiwan which is the representative of the Asian emerging markets implement the QFⅡsystem actively and make a key step in securities market's internationalization. The successful Implementation of QFⅡsystem in emerging markets in Asia have shown that, in the case of the capital account not yet fully open, the introduction of QFⅡsystem is not only indeed able to play an important role in improving the investor structure, fostering rational investment concepts and Increasing the supply of funds of the market, but also can make a introduction of competition mechanism to improve the governance structure of listed companies.In 2002, China introduced the QFⅡsystem by promulgated the "Qualified Foreign Institutional Investors Tentative Measures on Investments in Securities" and in 2006 issued the "Qualified Foreign Institutional Investors Securities investment management" to do a partial adjustment to the QFⅡsystem. This paper mainly analyzes the implementation of QFⅡsystem of our country, discuss some problems in the course of the implementation and make some relevant recommendations to improve the implementation of QFII which is basis on the Asian emerging markets' successful experience of implementing QFII system.The main content of this paper is:The Paper first introduces the writing purpose, methods and ideas of this paper, review the domestic and international literature on the QFII system and then make a summarization about them. After then the paper introduces the basic concepts of QFII system, including the meaning, content, and the impact on the securities market. The third chapter first analysis the implementation of Taiwan, Korea and other Asian emerging market countries (regions), and then summed up the general rule:the implementation of QFII system should be a gradual process, in the early time the regulators must control the risk in affordable range through strict regulations. With the expansion of securities markets and the increased ability of resisting risks, the regulators can make a deregulation to relax control. Besides, the continuous progress of QFII system needs a good securities market environment to match with, so the domestic legal system and regulatory measures must be improved as soon as possible. The paper also describes the current status of China's QFII system, analysis the background of the implementation of QFII system and the history of the introduction of QFII system. This section also briefly describes the recent status of China's QFII system and the impact on securities markets given by the implementations of QFII system. The fifth chapter mainly analysis the question happened in the process of implementation of our country's QFII system, the question mainly include the contents of QFII system design issues and problems arise in the course of the implementation of QFII system. From a practical point of view, the current control measures of the QFII system was too strict to long-term development of QFII system. There are also some irrational, non-standard factors in the development of our securities markets such as law and regulations, regulatory Measures, the split-share issues and imperfect information disclosure issues which hinder the healthy development of QFII system. If these issues are not properly treated, then QFII system as well as the development of securities market will not get a solid guarantee. At the last chapter, the paper combines the experience of the implementation of Asian emerging market with the realities of the current development of China's QFII system and makes a number of recommendations for improvement.