Core Viewpoint - The article discusses the increasing interest of individual investors in overseas investments to diversify risks and seek higher returns, while highlighting the strict foreign exchange controls in China that limit personal overseas investment channels [1][3]. Group 1: Compliance Principles - It is emphasized that there is currently no direct "overseas investment filing" channel for individuals in China, unlike for enterprises [3]. - The core of individual overseas investment lies in "channelization" and "securitization," meaning investments must be made through state-approved financial intermediaries in standardized financial products [3]. Group 2: Main Compliance Paths and Procedures - **Path 1: QDII (Qualified Domestic Institutional Investor) Channel** - This is the most common and straightforward method for individual investors to access overseas markets [4]. - QDII allows approved domestic financial institutions to raise RMB funds, convert them to foreign currency, and invest in overseas financial markets [4]. - Investment targets include stocks, bonds, and public funds listed on overseas exchanges [4]. - The process involves selecting QDII products, opening an account, purchasing the products in RMB, and managing quotas through the financial institution [4]. - Advantages include simple procedures, low investment thresholds, professional management, and full compliance [4]. - Disadvantages include limited investment scope and exposure to exchange rate risks and management fees [4]. - **Path 2: Shanghai-Hong Kong Stock Connect / Shenzhen-Hong Kong Stock Connect** - This method allows direct trading of specific Hong Kong stocks and is considered a highly compliant and efficient channel [6]. - Investors need a domestic A-share securities account and must meet asset thresholds and complete knowledge assessments to open trading permissions [8]. - Advantages include direct investment in Hong Kong stocks, use of RMB for transactions, and regulatory oversight [8]. - Disadvantages include a minimum asset requirement of RMB 500,000, which excludes many retail investors, and limited investment options [8]. - **Path 3: Overseas Bank Accounts and Cross-Border Remittances** - This method is primarily for personal consumption needs such as travel or education, allowing some funds for overseas financial investments under strict compliance [10]. - Opening an overseas bank account requires adherence to the annual USD 50,000 foreign exchange purchase limit and compliance with usage declarations [11]. - The process involves opening an account abroad, compliant currency exchange, and remitting funds for investment [11]. - Important considerations include potential policy risks, legal responsibilities, and the complexity of operations [11].