Qualified Foreign Institutional Investor

The Qualified Foreign Institutional Investor (QFII; ) is a program that was launched in 2002 in People's Republic of China

People's Republic of China

China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...

to allow licensed foreign investors to buy and sell yuan

Renminbi

The Renminbi is the official currency of the People's Republic of China . Renminbi is legal tender in mainland China, but not in Hong Kong or Macau. It is issued by the People's Bank of China, the monetary authority of the PRC...

-denominated "A" shares in China

China

Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...

's mainland stock exchanges (in Shanghai

Shanghai Stock Exchange

The Shanghai Stock Exchange , abbreviated as 上证所/上證所 or 上交所, is a stock exchange that is based in the city of Shanghai, China. It is one of the two stock exchanges operating independently in the People's Republic of China, the other is the Shenzhen Stock Exchange...

and Shenzhen

Shenzhen Stock Exchange

The Shenzhen Stock Exchange is one of the People's Republic of China's two stock exchanges, alongside the Shanghai Stock Exchange. It is based in Shenzhen, China...

). Chinese mainland stock exchanges were previously closed off to foreign investors due to China's exercise of tight capital controls which restrict the movement of asset

Asset

In financial accounting, assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset...

s in-and-out of the country. By the end of April 2011, 103 licenced QFII investors had been granted a combined quota of $20.7 billion to invest in China's
capital markets under the QFII program. Foreign access to China's yuan-denominated "A" stocks are still limited, with quotas placed under the QFII program amounting to US$30 billion.

Background

Regulations of the QFII program were based on "Temporary Regulation on Domestic Securities Investment by Qualified Foreign Institutional Investor" (合格境外机构投资者境内证券投资管理暂行办法), which was publicized on 5th Nov 2002 and ceased to be in effect on 1st Sep 2006, and "Regulation on Domestic Securities Investment by Qualified Foreign Institutional Investor"(合格境外机构投资者境内证券投资管理办法), which is publicized on 24th Aug 2006, and came into effect on 1st Sep 2006.

Pursuant to "Regulation on Domestic Securities Investment by Qualified Foreign Institutional Investor"，to qualify as a QFII, the candidate must:

has stable finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...

, good credibility, meet the minimum asset
Asset
In financial accounting, assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset...

scale set by China Securities Regulatory Commission
China Securities Regulatory Commission
The China Securities Regulatory Commission is an institution of the State Council of the People's Republic of China , with ministry-level rank...

（CSRC);
the number of staffs meet the requirement set by the authority in its own country or area;
has healthy governing structure
Corporate governance
Corporate governance is a number of processes, customs, policies, laws, and institutions which have impact on the way a company is controlled...

and complete internal control system, received no significant punishment in the last 3 years;
candidate's home country has complete legal and supervision system, and its home country or home area has signed Memorandum of Understanding
Memorandum of understanding
A memorandum of understanding is a document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action. It is often used in cases where parties either do not imply a legal commitment or in...

（MOU） with CSRC, and maintains effective supervision cooperation;
other requirements set by CSRC based on prudence
Prudence
Prudence is the ability to govern and discipline oneself by the use of reason. It is classically considered to be a virtue, and in particular one of the four Cardinal virtues .The word comes from Old French prudence , from Latin...

.

QFII Qualification Statistics (July 2008)

No.	Name of QFII	Qualification approved date
1	UBS AG	May 23, 2003
2	Nomura Securities Co., Ltd. Nomura Nomura Nomura Nomura (野村 (field village), 埜村 (wilderness field) is a Japanese surname. It can refer to:-Finance:Nomura Holdings, part of the Nomura Group (also including Nomura Securities Co.)-People:Don Nomura (born 1957), Japanese-American baseball agent...	May 23, 2003
3	Morgan Stanley & Co. International Limited Morgan Stanley Morgan Stanley is a global financial services firm headquartered in New York City serving a diversified group of corporations, governments, financial institutions, and individuals. Morgan Stanley also operates in 36 countries around the world, with over 600 offices and a workforce of over 60,000....	June 5, 2003
4	Citigroup Global Markets Limited Citigroup Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...	June 5, 2003
5	Goldman, Sachs & Co.	July 4, 2003
6	Deutsche Bank Deutsche Bank Deutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets... AG or Deutsche Bank Aktiengesellschaft	July 30, 2003
7	The Hongkong and Shanghai Banking Corporation Limited	August 4, 2003
8	ING Ing -In English:* -ing, a suffix added to English verbs to make a present active participle or a gerund* Ing, a word for a water-meadow-In old Germanic history:* Ing, Ingui or Yngvi, a Germanic god* Ingaevones, a West Germanic cultural group... Bank N.V.	September 10, 2003
9	JPmorgan Chase Bank	September 30, 2003
10	Credit Suisse Credit Suisse The Credit Suisse Group AG is a Swiss multinational financial services company headquartered in Zurich, with more than 250 branches in Switzerland and operations in more than 50 countries.-History:... (HongKong) Limited	October 24, 2003
11	Standard Chartered Bank (HongKong) Limited	December 11, 2003
12	Nikko Asset Management Co., Ltd.	December 11, 2003
13	Merrill Lynch Merrill Lynch Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York... International	April 30, 2004
14	Hang Seng Bank Hang Seng Bank Hang Seng Bank Limited is the second largest bank in Hong Kong. It is a listed company but it is majority owned by the HSBC Group via The Hongkong and Shanghai Banking Corporation. Hang Seng is also one of the constituent shares of the Hang Seng Index...	May 10, 2004
15	Daiwa Securities SMBC Co., Ltd.	May 10, 2004
16	Lehman Brothers Lehman Brothers Lehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker... International (Europe)	July 6, 2004
17	Bill & Melinda Gates Foundation Bill & Melinda Gates Foundation The Bill & Melinda Gates Foundation is the largest transparently operated private foundation in the world, founded by Bill and Melinda Gates. It is "driven by the interests and passions of the Gates family"...	July 19, 2004
18	INVESCO Asset Management Limited	August 4, 2004
19	ABN AMRO ABN AMRO ABN AMRO Bank N.V. is a Dutch state-owned bank with headquarters in Amsterdam. It was re-established, in its current form, in 2009 following the acquisition and break up of ABN AMRO Group by a banking consortium consisting of Royal Bank of Scotland Group, Santander and Fortis... Bank N.V.	September 2, 2004
20	Société Générale Société Générale Société Générale S.A. is a large European Bank and a major Financial Services company that has a substantial global presence. Its registered office is on Boulevard Haussmann in the 9th arrondissement of Paris, while its head office is in the Tours Société Générale in the business district of La...	September 2, 2004
21	Templeton Asset Management Ltd.	September 14, 2004
22	Barclays Bank PLC	September 15, 2004
23	Dresdner Bank Dresdner Bank Dresdner Bank AG was one of Germany's largest banking corporations and was based in Frankfurt. It was acquired by competitor Commerzbank in December 2009.- 19th century :... Aktiengesellschaft	September 27, 2004
24	Fortis Fortis Fortis is a Latin word meaning "strong, sturdy, brave, manly, resolute", and in modern usage may refer to:* Aqua fortis, an alternate name for concentrated nitric acid... Bank SA/NV	September 29, 2004
25	BNP Paribas BNP Paribas BNP Paribas S.A. is a global banking group, headquartered in Paris, with its second global headquarters in London. In October 2010 BNP Paribas was ranked by Bloomberg and Forbes as the largest bank and largest company in the world by assets with over $3.1 trillion. It was formed through the merger...	September 29, 2004
26	Power Corporation of Canada Power Corporation of Canada Power Corporation of Canada is a Canadian company with assets in North America and Europe in a number of industries. These industries include media, pulp and paper, and financial services....	October 15, 2004
27	Calyon S.A.	October 15, 2004
28	Goldman Sachs Goldman Sachs The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients... Asset Management International	May 9, 2005
29	Martin Currie Investment Management Ltd.	October 25, 2005
30	Government of Singapore Investment Corporation Government of Singapore Investment Corporation The Government of Singapore Investment Corporation Private Limited is a sovereign wealth fund established by the Government of Singapore in 1981 to manage Singapore's foreign reserves... Pte. Ltd.	October 25, 2005
31	AIG AIG AIG is American International Group, a major American insurance corporation.AIG may also refer to:* And-inverter graph, a concept in computer theory* Answers in Genesis, a creationist organization in the U.S.* Arta Industrial Group in Iran... Global Investment Corp.	November 14, 2005
32	Temasek Temasek Temasek was the name of an early city on the site of modern Singapore. From the 14th century, the island has also been known as Singapura, which is derived from Sanskrit and means "Lion City"... Fullerton Alpha Investments Pte. Ltd.	November 15, 2005
33	JF Asset Management Limited	December 28, 2005
34	The Dai-ichi Mutual Life Insurance Company The Dai-ichi Mutual Life Insurance Company , or Dai-ichi Life for short, is the third largest life insurer in Japan measured by revenue, only behind Japan Post Insurance and Nippon Life Insurance....	December 28, 2005
35	DBS Bank Ltd.	February 13, 2006
36	AMP Capital Investors Ltd.	April 10, 2006
37	Scotiabank Scotiabank The Bank of Nova Scotia , commonly known as Scotiabank , is the third largest bank in Canada by deposits and market capitalization. It serves some 18.6 million customers in more than 50 countries around the world and offers a broad range of products and services including personal, commercial,... or The Bank of Nova Scotia	April 10, 2006
38	KBC KBC KBC may refer to:* Kachemak Bay Campus, a campus of Kenai Peninsula College, a unit of the University of Alaska Anchorage* Kenmore Baptist Church, a church located in Kenmore, Queensland, Australia... Financial Products UK Limited	April 10, 2006
39	La Compagnie Financiere Edmond de Rothschild Banque	April 10, 2006
40	Yale University Yale University Yale University is a private, Ivy League university located in New Haven, Connecticut, United States. Founded in 1701 in the Colony of Connecticut, the university is the third-oldest institution of higher education in the United States...	April 14, 2006
41	Morgan Stanley Morgan Stanley Morgan Stanley is a global financial services firm headquartered in New York City serving a diversified group of corporations, governments, financial institutions, and individuals. Morgan Stanley also operates in 36 countries around the world, with over 600 offices and a workforce of over 60,000.... Investment Management Inc.	July 7, 2006
42	Prudential Asset Management (Hongkong) Limited	July 7, 2006
43	Stanford University Stanford University The Leland Stanford Junior University, commonly referred to as Stanford University or Stanford, is a private research university on an campus located near Palo Alto, California. It is situated in the northwestern Santa Clara Valley on the San Francisco Peninsula, approximately northwest of San...	August 5, 2006
44	GE Asset Management Incorporated General Electric General Electric Company , or GE, is an American multinational conglomerate corporation incorporated in Schenectady, New York and headquartered in Fairfield, Connecticut, United States...	August 5, 2006
45	United Overseas Bank United Overseas Bank United Overseas Bank Limited , abbreviated as UOB is a bank incorporated in Singapore. It was founded 6 August 1935 by Kuching-born Datuk Wee Kheng Chiang, father of the present United Overseas Bank Group Chairman, Mr... Limited	August 5, 2006
46	Schroder Investment Management Limited Citigroup Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...	August 29, 2006
47	HSBC HSBC HSBC Holdings plc is a global banking and financial services company headquartered in Canary Wharf, London, United Kingdom. it is the world's second-largest banking and financial services group and second-largest public company according to a composite measure by Forbes magazine... Investments (Hongkong) Limited	September 5, 2006
48	Shinko Securities Co., Ltd.	September 5, 2006
49	UBS Global Asset Management (Singapore) Ltd.	September 25, 2006
50	Sumitomo Mitsui Asset Management Company, Limited Sumitomo Mitsui Banking Corporation is a Japanese bank based in Yurakucho, Chiyoda, Tokyo, Japan. It is a member of the Sumitomo Group and Mitsui Group. As of the year 2009, SMBC was the second largest bank in Japan in terms of assets.-History:...	September 25, 2006
51	Norges Bank	October 24, 2006
52	Pictet Asset Management Limited	October 25, 2006
53	The Trustees of Columbia University Columbia University Columbia University in the City of New York is a private, Ivy League university in Manhattan, New York City. Columbia is the oldest institution of higher learning in the state of New York, the fifth oldest in the United States, and one of the country's nine Colonial Colleges founded before the... in the City of New York	March 12, 2008
54	Prudential Asset Management Co., Ltd.	April 7, 2008
55	Robeco Robeco Robeco is a Dutch asset management firm founded in 1929 as the Rotterdamsch Beleggings Consortium . By year end 2009, the company had over € 130 billion of assets under management. It was acquired in 2001 by the Rabobank Groep.Robeco offers assets management services to both institutional and... Institutional Asset Management B.V.	May 5, 2008
56	State Street State Street State Street may refer to:State Street , MassachusettsState Street , IllinoisState Street , Wisconsin- See also :State Street Corporation, a holding company servicing institutional investment clients*State Street Bank v... Global Advisors Asia Limited	May 16, 2008
57	Platinum Investment Company Limited	June 2, 2008
58	KBC Asset Management N.V.	June 2, 2008
59	Mirae Asset Investment Management Co., Ltd.	July 25, 2008
60	ACE INA International Holdings, Ltd.	2008.8.5
61	Caisse de dépôt et placement du Québec Caisse de dépôt et placement du Québec The Caisse de dépôt et placement du Québec manages public pension plans in the Canadian province of Quebec. It was founded in 1965 by an act of the National Assembly...	2008.8.22
62	President and Fellows of Harvard College Harvard College Harvard College, in Cambridge, Massachusetts, is one of two schools within Harvard University granting undergraduate degrees...	2008.8.22
63	Samsung Investment Trust Management Co., Ltd.	2008.8.25
64	Alliance-Bernstein Limited	2008.8.28
65	Oversea Chinese Banking Corporation Limited	2008.8.28
66	First State First State First State is a project of Sander van Dien and Shane Halcon. First State has released numerous singles, remixes and albums and compilations, most of which gained recognition within the world wide Trance scene... Investment Management (UK) Limited	2008.9.11
67	DAIWA Asset Management Co.	2008.9.11
68	Shell Asset Management Company B.V.	2008.9.12
69	T. Rowe Price T. Rowe Price T. Rowe Price is a publicly owned Investment firm, headquartered in Baltimore, Maryland. It was founded in 1937 by Thomas Rowe Price, Jr.. The company offers mutual funds, subadvisory services, and separate account management for individuals, institutions, retirement plans, and financial... International, Inc.	2008.9.12
*Reference*: www.csrc.gov.cn/

External links

China Securities Regulatory Commission (中国证券监督管理委员会) website

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Background

QFII Qualification Statistics (July 2008)

See also

External links