What is QFII and QDII?

Only a Qualified Foreign Institutional Investor (“QFII”) may convert non-RMB currency into renminbi (“RMB”) for purposes of investing in China’s capital markets. Only a Qualified Domestic Institutional Investor (“QDII”) may convert RMB into a non-RMB currency for purposes of investing in overseas markets.

What can QDII invest in?

Under QDII rules, insurers are only allowed to invest their foreign exchange funds in overseas market products (such as bank bills, negotiable certificates of deposit), fixed income products, depository receipt, and certain equity products.

How does QDII work?

The QDII scheme enables domestic institutional investors with a QDII licence and quota approved by the relevant Chinese regulatory authority, to invest in offshore markets. Each QDII is granted a specific quota by the State Administration of Foreign Exchange (SAFE).

What does Rqfii stand for?

Qualified Foreign Institutional Investor (QFII) and RMB Qualified Foreign Institutional Investor (RQFII) are the quota/approval-based inbound investment programmes launched by the Chinese government in 2002 and 2011 respectively.

What is QFII China?

The Qualified Foreign Institutional Investor (QFII) is a program that allows specified licensed international investors to participate in mainland China’s stock exchanges.

What is QDLP China?

Qualified Domestic Limited Partnership (QDLP) is a pilot program developed by the Chinese local governments which allows foreign and domestic asset managers to raise RMB from high net worth and institutional investors in China for the purposes of overseas investments, through a Chinese feeder product.

What is QDII quota?

The QDII program is a quota-based system through which Chinese mainland-based institutions can buy shares in foreign companies through mutual funds. The expansion of China’s QDII quota comes as public funds are rolling out relevant products to meet Chinese residents’ demand for investing overseas.

What is QFII in China?

Who are domestic institutional investors in India?

Domestic Institutional Investors are institutions like insurance companies, mutual fund houses, pension funds, or provident funds. DIIs generally pool money from the small investors of the country and then trade in different securities and assets of the country.

Does QFII exist?

The QFII and RQFII schemes were launched in 2002 and 2011 respectively. However, QFII and RQFII licences will remain and foreign investors will still need to apply for eligibility from the China Securities Regulatory Commission (CSRC).

What is a wholly foreign owned enterprise China?

A “wholly foreign-owned enterprise” is a limited-liability company, which is wholly owned by one or more foreign investors. Unlike a representative office, these enterprises can make profits and issue local invoices in renminbi (RMB), China’s official currency, to suppliers.

What is China bond connect?

Bond Connect is a new mutual market access scheme that allows investors from Mainland China and overseas to trade in each other’s bond markets through connection between the related Mainland and Hong Kong financial infrastructure institutions.