Qualified Foreign Institutional Investor (QFII)

Foreign investments in China were restricted due to foreign exchange control. In 2002, China Securities Regulatory Commission (CSRC) and the People’s Bank of China (PBOC) jointly issued the Provisional Measures on Administration of Domestic Securities Investment of Qualified Foreign Institutional Investors, initiating the pilot QFII scheme, allowing foreign investors to enter China’s capital market directly. QFII refers to Qualified Foreign Institutional Investors, including asset management companies, insurance companies, securities firms, commercial banks, and others such as pension funds, charity foundations, endowment funds, sovereign wealth funds…