Qualified Foreign Institutional Investor (QFII)

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Definition of 'Qualified Foreign Institutional Investor (QFII)'

A Qualified Foreign Institutional Investor (QFII) is a foreign institutional investor that has been approved by the China Securities Regulatory Commission (CSRC) to invest in the Chinese domestic securities market. QFIIs are allowed to invest in a wide range of Chinese securities, including stocks, bonds, and other financial instruments.

The QFII program was established in 2002 as a way to allow foreign investors to participate in the Chinese securities market. The program has been very successful, and QFIIs have invested billions of dollars in China's securities market.

There are a number of requirements that foreign institutional investors must meet in order to qualify for the QFII program. These requirements include having a minimum net asset value of $50 million, being a regulated financial institution, and having a track record of investing in securities.

QFIIs are subject to a number of restrictions on their investments in China's securities market. These restrictions include limits on the amount of money that can be invested, the types of securities that can be invested in, and the length of time that investments can be held.

The QFII program has been a positive force in the development of China's securities market. QFIIs have brought much-needed capital to the market, and they have helped to improve the liquidity and efficiency of the market. The QFII program has also helped to promote the internationalization of China's securities market.

The QFII program is a significant step in the opening up of China's financial markets. It is a sign that China is committed to attracting foreign investment and that it is willing to allow foreign investors to participate in the development of its securities market.

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