QF - II System -- Analysis On The Institutional Change Of The Opening Of China's Securities Market

Owing to its late starting points, fast development and huge achievement since more than a decade of its development, the stock market in our country has become a significant financing platform in the national finance system and an essential part of the system, and has played an important role in the national economic and social development. After the entry of our country into the WTO, the opening-up and transformation of the stock market will undergo major changes. As one of the steps to open up capital markets in emerging markets in an orderly and gradual fashion, QFII has been well put into practice in some countries and regions. Drawing on the experience of practices in those countries and regions and adopting QFII measures in our stock market based on the real situations in our country are a strategic option to push forward the opening-up of the national capital market to the outside world, eventually integrate itself into and gradually onto the track of the international capital market.It seems that QFII does nothing but bring in new flows of capitals to the internal capital market, when the stock market suffers from recession, QFII becomes a ready remedy to ease the pressure on capitals in the domestic capital markets. In fact however, judging from the overall economic and financial circumstances, the most deficient factor at present is by no means the lack of capitals. In the domestic market, the residential savings has maintained its rapid-growing momentum all the time. Regardless of the more than 10,000 billion RMB savings, the foreign currency savings by residents is equally enormous. Therefore, generally speaking, the market capital reserve is fairly ample. Currently the crucial point to stimulate the growth of the domestic capital market lies in promoting the marketization of the capital market and the systematic innovation of internationalization. The important impact of introducing QFII to our country in time is on capital but on the innovation of the market system. The thesis elaborates on the strategic significances of the implementation of QFII in our country mainly from the angle of the systemtransformation.The thesis is divided into five chapters.The first part expounds the content, classification and characteristics of QFII. It puts emphases on introducing the origin and development of QFII in Taiwan, South Korea and India. Through analyses of different countries and regions, it clarifies such core issues as qualification identification, the management of import and export of capitals, the scope of investment and the restriction of quota etc of QFII.The second chapter explains the strategic significances of QFII system implementation in our country by means of institutional analysis. Although since the setup of the stock market in our country it has made progress in leaps and bounds in such fields as the structure and the scale, the category of financial investment and the market participants, some drawbacks arise with the further development of the market and.the needs of internationalization, for instance, the serious separation of the stockholder's rights, the imperfection of restriction and incentive mechanism of listed companies and the malpractices of the operating mechanism of markets etc. As a result, it becomes more and more urgent to transform the system in-depth. The thesis analyzes, from the perspective of game play that after the implementation of QFII system, the game equilibrium of the market will undergo changes and evolve from the low stages to high ones, the consequence of which is the apparent improvement of the efficiency of the market.The third chapter, from the aspect of authentic proof, analyzes the opening-up of stock market on Taiwan, South Korea and Indian. After their announcements of the implementation of QFII policy, there appeared regression of the market to certain degrees. Nevertheless, the policy has be and large projected positive influences on the stock market given a marked push to the enhancement of the stock prices, absorbed huge amounts of over...