Recently, cross-border regulation in the capital market has continued to tighten, and the standards for industry compliance operations have been continuously improved, drawing significant attention to the standardized and systematic operations of foreign institutions investing in China. At the same time, a series of favorable policies related to domestic opening-up have been implemented, continuously broadening the channels for foreign capital to enter the market.

In January 2026, the Ministry of Finance clarified that interest income from bonds obtained by foreign institutions investing in the domestic bond market would be temporarily exempt from corporate income tax and value-added tax; in April, the China Securities Regulatory Commission further relaxed access, allowing qualified foreign institutional investors to participate in government bond futures trading for hedging purposes.

A series of policy dividends have created a favorable environment for qualified foreign institutional investors to conduct business. Data shows that as of the end of April this year, the number of relevant foreign clients in China has reached 974, marking a significant increase compared to the same period last year, and enthusiasm for foreign capital to layout in the Chinese market remains high. On May 21, Morgan Stanley obtained its fourth QFII license.

As the scale of foreign capital entering the market continues to grow and the variety of investable products becomes increasingly rich, overseas capital is deeply participating in the mainland capital market through diversified trading tools. While the market expands, it also raises higher requirements for the cross-border service capabilities, technical system stability, and compliance risk control levels of local financial institutions.

Industry insiders indicate that compared to domestic ordinary trading systems, the QFII business system needs to simultaneously consider international trading standards, domestic localized regulatory rules, and a closed-loop process for cross-border business, making the system construction much more challenging than conventional trading systems.

To address the common technical challenges in the industry, domestic financial IT service provider KINGDOM has launched a QFII trading system that adapts to the full-process cross-border business. This system has now become one of the mainstream technical solutions for domestic brokerages to conduct QFII cross-border business.

From an architectural design perspective, this system adopts a cloud-native modular architecture and an open service model, covering the entire business chain modules including accounts, trading, risk control, and end-of-day clearing and settlement, effectively solving the pain points faced by brokerages in system performance, stable business operations, and rapid implementation of new businesses.

The core difficulty of cross-border trading lies in the protocol interoperability between domestic trading systems and international terminals. In terms of cross-border connectivity, the KINGDOM QFII system is compatible with multiple versions of the FIX protocol, allowing smooth integration with mainstream international trading terminals such as Bloomberg and Fidessa, and has expanded to include hundreds of Tag values, fully meeting the needs for efficient international trading integration.

Against the backdrop of tightening cross-border business regulation, compliance and risk control capabilities are the core consideration indicators for foreign institutions when choosing service providers.

This system establishes a comprehensive and multi-dimensional risk control system, covering various management functions such as trading markets, seats, fees, quotas, and risk monitoring, and provides a multi-role, multi-permission security management mechanism. By relying on real-time monitoring of trading behaviors, it ensures that QFII clients' investment operations always comply with regulatory requirements, helping clients efficiently respond to the continuously improving compliance requirements.

Trading speed has always been a core indicator of concern for foreign professional investment institutions. The system utilizes all-in-memory database technology, fully storing instructions and transactions in memory, achieving a microsecond-level delay for single securities transactions. By optimizing the FIX gateway, trading core, and order machine integrated architecture, it further compresses the business link and can flexibly allocate trading routes according to QFII sub-accounts, creating a safe and reliable ultra-fast trading experience for QFII clients In the clearing and settlement phase, the platform can simultaneously support QFII custodian bank settlement and various broker settlement models, fully meeting diverse clearing needs.

In terms of reporting services, the system is equipped with templates for connecting with all market custodian banks and hundreds of personalized client templates, supporting multiple formats and languages for output, and allowing for drag-and-drop creation of custom reports, comprehensively meeting clients' needs for quick reconciliation and personalized customization.

Currently, the high-level institutional opening of the domestic capital market has entered a deep-water zone, with various QFII supporting policies continuously being implemented, and the policy dividends are gradually being transformed into tangible increments in cross-border transactions. As foreign capital's participation in the domestic market continues to deepen and broaden, the importance of cross-border financial infrastructure will become even more prominent.

Industry analysts believe that future cross-border financial competition will not only be a competition of brokerage service capabilities but also a contest of underlying financial technology systems. Financial IT vendors, including KINGDOM, will continue to iterate on cross-border trading, risk control, and clearing technology products, continuously optimizing the underlying infrastructure of cross-border finance, helping domestic brokerages enhance their comprehensive cross-border service capabilities, while providing global investors with more stable, compliant, and efficient technical support to participate in the Chinese capital market, promoting the continuous improvement of the domestic cross-border financial ecosystem