The Qualified Foreign Institutional Investor (QFII) program serves as the primary way to gain access to the restricted China equity markets. The QFII program was first launched in 2002 by the Chinese government, and has evolved over the years as the country's markets develop and international investors are coming in. In its current state, the QFII program provides designated international institutional investors the ability to buy and sell yuan-denominated “A” shares. A” shares are shares of Chinese companies sold in the country’s domestic capital markets and are only available to Chinese citizens and foreign investors who use the QFII program.

The QFII program has several requirements. First, eligible investors must be properly registered and licensed to operate in their respective country, and also in China's stock markets. Additionally, all investors must hold a minimum of US$50 million in foreign exchange reserves to invest in the QFII program. Investors must also meet certain criteria regarding their track record in the domestic markets and must be able to demonstrate a certain level of professional competence and experience.

Once registered and approved, investors are able to begin investing in China's domestic capital markets. They will be able to purchase local Chinese stocks and bonds in addition to participating in international stock index products in the internal Chinese trading system. The purchasing and selling of yuan assets is possible as long as investors have an approved QFII quota. Foreign investors are also allowed to sell A-shares purchased on the exchange and can repatriate payments out of the country.

In addition to the QFII program, investors also have the option of utilizing the Renminbi Qualified Foreign Institutional Investor (RQFII) program, which allows them to invest in yuan-denominated securities. Unlike the QFII program, investors under the RQFII scheme do not have to obtain a quota and adhere to the US$50 million foreign exchange reserve requirement, making it easier for overseas investors to gain direct access to the domestic Chinese capital markets.

To conclude, the QFII program remains the preferred approach for foreign investors looking to access the Chinese equity markets. It is a heavily regulated program with stringent requirements, but it provides a robust framework from which foreign investors can invest in China's A-shares under the oversight of the Chinese government. The QFII program also prevents potential manipulation of prices by international investors as the Chinese government inspects and monitors all transactions to ensure the integrity of the markets. Lastly, the RQFII program serves as a viable alternative for investors who do not meet the criteria of the QFII program and is a less costly and equally effective way to invest in the Chinese markets.