Qualified Foreign Institutional Investor (QFII)

On November 5, 2002 the China Securities Regulatory Commission (CSRC) and the People's Bank of China (PBOC) introduced the QFII (Qualified Foreign Institutional Investor) program as a provision for foreign capital to access China's financial markets.

Chinese QFII regulations relax some capital controls and allow foreign institutions to invest in RMB-denominated equity and bond markets. Indeed, QFII is a Chinese brokerage business, which allows qualified foreign institutions to trade Chinese A-shares via special accounts opened at designated custodian banks, for their clients.

The QFII mechanism not only further opens China's securities markets ¡§C but also gives foreign investors an opportunity to take position on those markets and buy stakes in Chinese companies, thus sharing in China's phenomenal growth. QFIIs can provide their clients with added opportunities to share in the growth of the Chinese Market.

List of QFII is here