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Definition of 'Qualified Domestic Institutional Investor - QDII'
An institutional investor that has met certain qualifications to invest in securities outside its home country. The most popular QDII program comes from the People's Republic of China, where the main regulatory body (the China Securities Regulatory Commission) may grant a limited avenue for institutional investors such as banks, funds and investment companies to invest in foreign-based securities.
The overall restrictions on ownership are in place for several reasons, including currency conversion concerns in nations where the currency is not free-floating.
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