Since its launch in 2002, the QFII program has been the principal means for foreign investors to invest directly in China’s securities markets. This year, the China Securities Regulatory Commission (CSRC) initiated extensive QFII reforms, one key outcome of which is that foreign investors find it much easier and quicker to obtain QFII licenses. This is primarily due to reforms that have accelerated the QFII license application process and reduced the volume of application documents required.

The QFII license application process includes the following two key steps:

1. Applying with the CSRC to obtain a QFII license; and

2. Obtaining an investment quota from the State Foreign Exchange Bureau (“SAFE”).