Research on the Present Development Situation of Chinese QFII System and International Comparison

QFII system is a transitional arrangement to selectively introduce foreign capital in China where capital project has not been completely opened. It has been almost 10 years since the implementation of QFII system in China. This paper analyzes the current development of QFII system in China based on the review of its history, shows the differences and limitations based on the comparison with QFII system in Taiwan and India and finally proposes our suggestions based on the international successful experiences.