You’ve probably heard that the government of China doesn’t mess around. Beijing probably isn’t the best place to start a punk band with highly political lyrics, or start your blog dedicated to "telling it like it is." The Chinese government has a lot to say about what goes on in China (and some to say about what goes on outside of China).
This regulatory regime extends to the investment community. China looks to control much of the activity in its financial markets. Among the rules it uses to exert this control, China puts restrictions on who can invest in foreign countries.
Which brings us to the qualified domestic investor designation. A QDII has government approval to invest in securities outside the home country. The designation means the Chinese government has deemed the organization (banks and investment funds, mostly) acceptable to buy and sell foreign securities.
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Finance: What is an Institutional Invest...1 Views
Finance a la shmoop what is an institutional investor? institution think
mutual fund company like fidelity or Wellington or State Street or Blackrock [Mutual fund companies appear]
also think hedge fund think giant pension fund or even a small one the
"institutional" part of this term means that the investor is a
professional they've likely gone to grad school taken a bunch of licensing exams
are really good at math and accounting good at poker probably as well [Person checks cards on poker table]
apprenticed with old people who mumble through chewed cigars about what the IPO
of Ford was like with Henry that whippersnapper and those investors are
professionally responsible for managing OPM other people's money standards are
higher when you lose someone else's money versus your own
well the institution behind them raises and retains the dough which is they then [Investor receives cash]
invest often in large chunks and their viewed as a different class by many
because unlike the cardiologists investor Club of Northeast Milwaukee
these investors actually understand the risks they're taking when they invest so [Men stood outside cardiologist investor club sign]
if a given stock shows tens of thousands of hundreds share trades odds are good
that cardiologists and their friends are buying in on tips they got from the golf
course if the trade blocks are in hunks of a hundred thousand or a million [Stocks in a sack of million shares]
shares each per block that is odds are good that well these are schooled
institutions buying and selling shares with a presumption that the
institutional investors will generally know what they're doing or at least more
so than the you know non institutional getting there so why would you want to
be an institutional investor? answer = bank if you're good and very very few people [Man discussing institutional investors]
actually are but if you are one of the vaunted few the proud the knowledgeable
who beats the market regularly in good markets and bad and can do it at scale
on hundreds of millions or billions of dollars invested well then you can
expect to make tens of millions of dollars a year [Man throws cash into the air]
shepherding the wealth of the wealthy or at least of
masses collecting your fees and whining about taxes until the cows come home [Cows appear on a field]
when did they leave anyway?