After that, the PBC launched various institutional arrangements, including RMB Qualified Foreign Institutional Investors (RQFII), RMB Qualified Domestic Institutional Investors (RQDII), Shanghai-Hong Kong Connect, Shenzhen-Hong Kong Connect, Mutual Recognition of Funds and Bond Connect, to improve the infrastructure system for RMB internationalization.
Ideally, a regulator like the Federal Reserve serves as a coordinating device to help financial institutions as well as consumers minimize informational problems and transaction costs in the financial marketplace.