The Qualified Foreign Institutional Investor Program in China – Recent Developments, New Opportunities and Ongoing Challenges

February 01, 2013
Since its launch in 2002, the Qualified Foreign Institutional Investor (QFII) program has been the principal means for foreign investors to invest directly in the securities markets of the People’s Republic of China (PRC or China). In the intervening decade, foreign investment in China’s securities markets has grown steadily, notwithstanding operational challenges, a limited array of permitted investments and an opaque regulatory frame-work governing investment. To facilitate increased foreign participation in China’s securities markets, PRC regulators recently have made the QFII program more flexible and more accessible to a larger audience of foreign investors.