QFII (Qualified Foreign Institutional Investors) is the English abbreviation of qualified foreign institutional investors, and QFII mechanism refers to the qualification accreditation system for overseas professional investment institutions to invest in China.

QFII is a transitional system for a country to introduce foreign capital and open its capital market to a limited extent when its currency is not fully convertible and its capital account is not yet open.

This system requires foreign investors to meet certain conditions if they want to enter a country's securities market, remit a certain amount of foreign exchange funds after approval by the relevant departments of the country, and convert them into local currency through a special account under strict supervision to invest in the local securities market.