What is the significance of implementing QFII system for China?

On June 8, 2002, 165438+ China People's Bank jointly issued the Interim Measures for the Administration of Domestic Securities Investment by Qualified Foreign Institutional Investors (hereinafter referred to as the Measures), which marked the establishment and implementation of QFII system in China Mainland. On this premise, studying the success or failure of Taiwan Province Province's 37 1 implementation of this system is conducive to the construction of China's securities market. As far as the present situation of China is concerned, the capital account is not yet open, the domestic securities market is not perfect, and it is unrealistic to completely open the capital market. At this time, it is the only way for China to open all its capital markets by invoking the specific obligations of GATS, gradually marketizing and absorbing qualified overseas investment institutions into the China stock market in batches. In recent years, China's stock market, especially the stock market, is in a downturn, and the structure of investors is abnormal, with small and medium-sized retail investors as the main body, while the proportion of institutional investors is too low, the profitability of stocks is high, the stock price is easily affected by policies, and the investment risk is high. All these reflect the immaturity of China stock market. If such a stock market is suddenly fully liberalized, a large amount of foreign hot money will flood in, just like a reservoir with an imperfect drainage and flood discharge system suddenly opens its floodgates, and the result may be a total collapse. However, China has joined the WTO, and according to its regulations of gradually opening its financial market, it will encounter the impact of foreign capital, especially international hot money, sooner or later. The urgent task is to improve its ability to handle capital and resist risks. To achieve this goal, it is not enough to rely only on its own slow adjustment and accumulation. Adopting QFII system is conducive to introducing a few foreign-funded institutions with abundant capital, long operating history, rich operating experience and rational investment strategy into China stock market.