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Qualified Domestic Institutional Investor (QDII)

Definition

Qualified Domestic Institutional Investor, also known as QDII, is a scheme relating to the capital market set up to allow financial institutions to invest in offshore markets such as securities and bonds. Similar to QFII, it is a transitional arrangement which provides limited opportunities for domestic investors to access foreign markets at a stage where a country/territory's currency is not traded or floated completely freely and where capital is not able to move completely freely in and out of the country.

What is 'Qualified Domestic Institutional Investor - QDII'

An institutional investor that has met certain qualifications to invest in securities outside its home country. The most popular QDII program comes from the People's Republic of China, where the main regulatory body (the China Securities Regulatory Commission) may grant a limited avenue for institutional investors such as banks, funds and investment companies to invest in foreign-based securities.

The overall restrictions on ownership are in place for several reasons, including currency conversion concerns in nations where the currency is not free-floating.

Explaining 'Qualified Domestic Institutional Investor - QDII'

QDII programs are used in places where the capital markets are not yet completely open to all investors. For example, any institutional investor in China that obtains approval to be a QDII may invest up to 50% of net assets into allowable foreign securities, so long as not more than 5% is invested in any one security. Only certain foreign markets are eligible for investment, including Britain and Hong Kong.

The QDII program in China was set up partly to provide the growing number of domestic investors with a place to park their funds; only a few hundred local stocks are listed on the Shanghai and Shenzhen stock exchanges.

Qualified Domestic Institutional Investor (qdii) FAQ

What qualifies as an institutional investor?

An institutional investor is an organization that invests money in the interest of others. Examples are Mutual assets, pension firms, and insurance agencies.

Is a trust an institutional investor?

Institutional Investors include but not limited to, pension funds administrators, mutual funds agencies, money managers, insurance firms, investment banks, commercial trusts, endowment funds, hedge funds, and also some private equity investors. The funds that institutional investors utilize does not include money own by themselves.

What is meant by institutional investors?

An institutional investor is an organization that invests money in the interest of others. Examples are Mutual assets, pension firms, and insurance agencies.

Who are the biggest institutional investors?

The largest Institutional Investors are, Asset managerWorldwide AUM (€M)- BlackRock4,884,550 Vanguard Asset Management - 3,727,455State Street Global Advisors - 2,340,323BNY Mellon Investment Management EMEA Limited - 1,518,42045

Who are domestic institutional investors?

Indian Mutual Funds. Mutual funds invest the pooled investments of investors in a range of securities which vary with the goal of the mutual fund. Such as, the Indian Insurance Companies, Local Pension Funds, Banking & Financial Institution.

Further Reading


What are the challenges and problems facing china's outward portfolio Investment? evidence from the qualified domestic institutional investor scheme
www.emerald.com [PDF]
… This is also consistent with the 'home bias' behaviour relating to capital repatriation during … The main policy initiative was the launch of two pilot schemes: Qualified Foreign Institutional … a mirror image with QFII, the QDII programme allows licensed domestic institutions to raise …

China's Capital Flow Regulations: The Qualified Foreign Institutional Investor and the Qualified Domestic Institutional Investor ProgramsChina's Capital Flow Regulations: The Qualified Foreign Institutional Investor and the Qualified Domestic Institutional Investor Programs
heinonline.org [PDF]
… This is also consistent with the 'home bias' behaviour relating to capital repatriation during … The main policy initiative was the launch of two pilot schemes: Qualified Foreign Institutional … a mirror image with QFII, the QDII programme allows licensed domestic institutions to raise …

Managers' Overseas Connections and Investment Preference: Evidence from China's Qualified Domestic Institutional Investor (QDII)Managers' Overseas Connections and Investment Preference: Evidence from China's Qualified Domestic Institutional Investor (QDII)
en.cnki.com.cn [PDF]
… This is also consistent with the 'home bias' behaviour relating to capital repatriation during … The main policy initiative was the launch of two pilot schemes: Qualified Foreign Institutional … a mirror image with QFII, the QDII programme allows licensed domestic institutions to raise …

China's outward direct and portfolio investmentsChina's outward direct and portfolio investments
onlinelibrary.wiley.com [PDF]
… This is also consistent with the 'home bias' behaviour relating to capital repatriation during … The main policy initiative was the launch of two pilot schemes: Qualified Foreign Institutional … a mirror image with QFII, the QDII programme allows licensed domestic institutions to raise …

The dynamics of financial market integration between Chinese A-and H-sharesThe dynamics of financial market integration between Chinese A-and H-shares
www.tandfonline.com [PDF]
… This is also consistent with the 'home bias' behaviour relating to capital repatriation during … The main policy initiative was the launch of two pilot schemes: Qualified Foreign Institutional … a mirror image with QFII, the QDII programme allows licensed domestic institutions to raise …

Impact of financial market liberalization on PE ratio: a study on China A-share marketImpact of financial market liberalization on PE ratio: a study on China A-share market
dr.ntu.edu.sg [PDF]
… This is also consistent with the 'home bias' behaviour relating to capital repatriation during … The main policy initiative was the launch of two pilot schemes: Qualified Foreign Institutional … a mirror image with QFII, the QDII programme allows licensed domestic institutions to raise …

An update on China's derivatives marketAn update on China's derivatives market
jsf.pm-research.com [PDF]
… This is also consistent with the 'home bias' behaviour relating to capital repatriation during … The main policy initiative was the launch of two pilot schemes: Qualified Foreign Institutional … a mirror image with QFII, the QDII programme allows licensed domestic institutions to raise …

Financial Crisis and Volatility Jumps: A Comparative Analysis Based on High-Frequency Data among Mainland China, Hong Kong and the US Stock Markets <span style=[J]' src='/thumbnails/?img=http%3A%2F%2Fen.cnki.com.cn%2FArticle_en%2FCJFDTotal-GLGU201201016.htm' />Financial Crisis and Volatility Jumps: A Comparative Analysis Based on High-Frequency Data among Mainland China, Hong Kong and the US Stock Markets [J]
en.cnki.com.cn [[J]' href='https:/api.miniature.io/pdf?url=en.cnki.com.cn%2FArticle_en%2FCJFDTotal-GLGU201201016.htm'>PDF]
… This is also consistent with the 'home bias' behaviour relating to capital repatriation during … The main policy initiative was the launch of two pilot schemes: Qualified Foreign Institutional … a mirror image with QFII, the QDII programme allows licensed domestic institutions to raise …

An Empirical Analysis on the Portfolio of QDII Fund and Greenhouse Gas Emission PermitsAn Empirical Analysis on the Portfolio of QDII Fund and Greenhouse Gas Emission Permits
ieeexplore.ieee.org [PDF]
… This is also consistent with the 'home bias' behaviour relating to capital repatriation during … The main policy initiative was the launch of two pilot schemes: Qualified Foreign Institutional … a mirror image with QFII, the QDII programme allows licensed domestic institutions to raise …



FAQ


What qualifies as an institutional investor?

An institutional investor is an organization that invests money in the interest of others. Examples are Mutual assets, pension firms, and insurance agencies.

Is a trust an institutional investor?

Institutional Investors include but not limited to, pension funds administrators, mutual funds agencies, money managers, insurance firms, investment banks, commercial trusts, endowment funds, hedge funds, and also some private equity investors. The funds that institutional investors utilize does not include money own by themselves.

What is meant by institutional investors?

An institutional investor is an organization that invests money in the interest of others. Examples are Mutual assets, pension firms, and insurance agencies.

Who are the biggest institutional investors?

The largest Institutional Investors are, Asset managerWorldwide AUM (€M)- BlackRock4,884,550 Vanguard Asset Management - 3,727,455State Street Global Advisors - 2,340,323BNY Mellon Investment Management EMEA Limited - 1,518,42045

Who are domestic institutional investors?

Indian Mutual Funds. Mutual funds invest the pooled investments of investors in a range of securities which vary with the goal of the mutual fund. Such as, the Indian Insurance Companies, Local Pension Funds, Banking & Financial Institution.

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