The criteria the QFII applicant must meet:

Sound financial and credit status/Risk control indicators meet the requirements set by laws and securities authorities under applicant's home jurisdiction.

Sound management structure and internal control system. Some specific requirements for various types of financial institutes are showing below:

• If a fund management institution: It must have operated its fund business for over 5 years with the most recent accounting year managing assets of not less than $10 billion
• If an insurance company: It must have operated its insurance business for over 30 years with paid-in capital of not less than $1 billion and manage securities of not less than $10 billion in the most recent accounting year.
• If a securities company: It must have operated securities business for over 30 years with paid-in capital of not less than $1 billion and manage securities assets of not less than $10 billion in the most recent accounting year.
• If a commercial bank: It must rank among the top 100 of the world in terms of total assets for the most recent accounting year and manage securities assets of not less than $10 billion.

Under new regulations of the CSRC, requirements on investor's qualifications, border securities and investment percentage, capital remittance and sub-account opening have been downgraded allowing more QFII's to enter the market.

The applicant must mandate a custodian and a broker for their securities trading. The elected custodian files the application for QFII qualification and investment quota to the CSRC and SAFE respectively.