What is QFII

QFII stands for Qualified Foreign Institutional Investor, which refers to a program in China that allows licensed foreign investors to trade in the mainland Chinese stock exchanges and bond markets. The QFII program was established in 2002 by the China Securities Regulatory Commission (CSRC) to provide foreign investors with access to the Chinese capital markets. In order to become a QFII, foreign institutional investors must meet certain eligibility criteria, including having a minimum of $500 million in assets under management and a track record of at least five years in securities investment. Once approved, QFIIs are allowed to invest in a wide range of financial instruments, including stocks, bonds, and other financial products. The QFII program has been seen as a way to attract foreign investment and expertise into the Chinese capital markets, while also helping to internationalize the country's financial system. It has also been seen as a way to provide more liquidity and stability to the Chinese markets by allowing foreign investors to participate. Overall, the QFII program has played an important role in opening up the Chinese capital markets to foreign investors, and has helped to further integrate China into the global financial system.