Key Difference Between QFII/RQFII and Stock Connect

  QFII/RQFII Stock Connect
Eligible Investors
  • Institutional investors with QFII/RQFII Licenses
  • QFII: certain type of institutional investors with certain AUM and operation experience
  • RQFII: institutional investors meet general operation and compliance requirements
  • Entry requirements to be simplified and unified, quantitative criteria to be cancelled
  • All Hong Kong and overseas institutional and individual investors
Investment Scope
  • Primary and secondary market, including the SSE STAR Market
  • Almost all exchange-listed or traded financial products, including equities, bonds, funds, futures and derivatives
  • Further investment scope expanding under evaluation
  • Secondary market only, excluding the SSE STAR Market
  • Eligible A shares listed in SSE and SZSE
Quota Control
  • Individual-level quota
  • Filing and approval required
  • Quota limitation and approval management to be abolished
  • Market-level Daily quota
Key Features
  • Onshore mechanism
  • Close to domestic institutional investor treatment with access to wide range of financial products
  • Offshore mechanism
  • Relatively flexible with limited range of eligible financial products

Taxation Rules

  QFII/RQFII Stock Connect
Eligible Investors
  • Institutional investors with QFII/RQFII Licenses
  • QFII: certain type of institutional investors with certain AUM and operation experience
  • RQFII: institutional investors meet general operation and compliance requirements
  • Entry requirements to be simplified and unified, quantitative criteria to be cancelled
  • All Hong Kong and overseas institutional and individual investors
Investment Scope
  • Primary and secondary market, including the SSE STAR Market
  • Almost all exchange-listed or traded financial products, including equities, bonds, funds, futures and derivatives
  • Further investment scope expanding under evaluation
  • Secondary market only, excluding the SSE STAR Market
  • Eligible A shares listed in SSE and SZSE
Quota Control
  • Individual-level quota
  • Filing and approval required
  • Quota limitation and approval management to be abolished
  • Market-level Daily quota
Key Features
  • Onshore mechanism
  • Close to domestic institutional investor treatment with access to wide range of financial products
  • Offshore mechanism
  • Relatively flexible with limited range of eligible financial products

For more information on taxation, please visit:

http://szs.mof.gov.cn/zhengwuxinxi/zhengcefabu/201411/t20141114_1158461.html (Chinese)