Research On The Development And Countermeasures Of QFII System In China

With the continuous development of economic globalization and the increasing economic integration,the cross-border movement of production factors was more liberalization and capital market opening to the outside world has also become a trend.In the new international context,China's economy increasingly integrated to the world economy,and eventually open up the security market has also become an inevitable trend.Refer to the pattem of other emerging market countries or regions opening up the securities market,China's QFII system was also introduced to attract foreign institutional investors investing in China's securities market.The QFII system was an important measure of China's securities markets.There has been more than 5 years for introduction of the system from the December 2002. Through analyzed the changes in the design of the system as well as the impact of China's securities market since the implementation of the QFII system,this paper got the idea of the securities market opening up through further implementation of the QFII system.This article is divided into five chapters.The first chapter is the introduction;this paper put forward the main background and significance,and then presented papers and research related to this article,as well as research methods,content and framework of this article.The second chapter analyzed the related theoretical basis to the QFII system,including the portfolio selection theory,the two gap model,and so on,and also given the signification of these theories put forward to the implementation of the QFII system.The third chapter summarizes the history of the implementation of the QFII system in China's Taiwan,South Korea,and then summed up the impact of stock market for the QFII system in China's Taiwan and South Korea.In the fourth chapter,the paper first analyzed the background of China's implementation of the QFII system,and then summed up the development of China's QFII system in the final give the assessment of the impact for the QFII system of our country's securities market.In the fifth chapter,the paper raise the problem for the first QFII system in China's implementation,and then put forward countermeasures combined with the general rules of open the security market and international experience.After analysis,the article got the following basic conclusions:(1) the impact of QFII in China's security market is a long-term process,although there have an impact on the supply of funds and the quantity of institutional investors in a short period,but the impact in the philosophy and strategies of investment and the internationalization of securities market is not clear.According to the international experience,this procedure needs a long-term accumulation.(2) China's securities market should be opened by a gradual way.The restrictions of QFII system should be relaxed in a step-by-step process.(3) The further development of QFII system needs the implementation of various measures such as the constitution of the securities market legal system,the improvement of the equity system,financial innovation,as well as the promotion the level of supervision.