Foreign Institutional Investors (FII) Brochure Special Edition

October 2023

In its 20 years of development, QFII has played a prominent role in the market. As China’s economy growth continues and its capital market keeps developing, there is an increased need to invest into China from foreign institutional investors. To support the further opening of China’s capital market, the “Provisions on Fund Administration of Domestic Securities and Futures Investment by Foreign Institutional Investors” was introduced on 7 May 2020 by the People’s Bank of China and the State Administration of Foreign Exchange (SAFE), removing the limitation on FII’s investment quota. By the end of June 2023, 772 institutions were approved and granted FII licenses. The number of foreign institutions planning to apply for FII licenses continue to increase steadily.

As the leading service provider of FII audit and tax services in China, we have received many queries about FIIs – how they are set up, operated, among other issues. In this Brochure, we share some insights with you – on FII regulatory developments and related hot topics including accounting, auditing and tax. We hope this Brochure will be a valuable reference for you.