To meet the requirements of foreign investors to expand investment in China’s capital market, the total quota for qualified foreign institutional investors (QFIIs) has been raised from USD 150 billion to USD 300 billion upon approval of the State Council.

As the earliest and most important institutional arrangement for China's capital market to open to the outside world, QFII system serves as one of the major channels for foreign investors to make investment in China's domestic financial market. From 2016 to 2018, the State Administration of Foreign Exchange (SAFE) conducted a significant reform on QFII system-related foreign exchange administration, including improving prudent management, abolishing restrictions on proportion of outward remittance and canceling relevant provisions on lock-up period, allowing foreign exchange hedging of securities assets held by QFIIs in China, which has greatly facilitated foreign investors to invest in domestic financial market via QFII channels.