QDII is the abbreviation of qualified domestic institutional investor. It is a securities investment fund established within the territory of a country and approved by the relevant departments of that country to engage in the investment business of securities such as stocks and bonds in overseas capital markets.

QDII is an investment system. The direct purpose of establishing this system is to "further open the capital account to create more foreign exchange demand, make the RMB exchange rate more balanced and market-oriented, encourage more domestic enterprises to go abroad, and thus reduce the trade surplus and capital account surplus", which is directly manifested in allowing domestic investors to directly participate in foreign markets and gain global market benefits.

QDII system was first proposed by Hong Kong government departments. Like CDR and QFII, it will be an expedient measure to open the mainland capital market under foreign exchange control, so as to allow domestic investors to invest in overseas capital markets when capital projects are not fully opened.

See Baidu encyclopedia /view/24795.htm for details.