Under the QFII system, qualified foreign institutional investors (QFII) will be allowed to remit a certain amount of foreign exchange funds and convert them into local currency, and invest in the local securities market through special accounts under strict supervision and management. All kinds of capital gains, including dividends, bid-ask spreads, etc., can be converted into foreign exchange for remittance after examination, which is actually a limited opening of the domestic securities market to foreign investors.

According to the Interim Measures for the Administration of Domestic Securities Investment of Qualified Foreign Institutional Investors jointly issued by the People's Bank of China and the China Securities Regulatory Commission, QFII's investment scope includes: A-share stocks listed on the stock exchange and other financial instruments approved by the China Securities Regulatory Commission.