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QFII2 is also known as Qualified Foreign Individual Investor which is designed to allow foreign individual investors to directly invest in china capital markets. Prior to QFII2, foreign investors were not able to directly buy or sell shares on China's stock exchanges, although they can indirectly invest via a QFII (Qualified Foreign Institutional Investor) fund. The QFII2 is regarded as one of the biggest efforts to internationalize the RMB, represents China’s effort to allow, on a selective basis, global individual investors to invest in its RMB denominated capital market. The Chinese government has been working on the QFII2 scheme for several years and been trying to roll it out very soon.
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