CHINESE money going into funds invested in offshore assets are encountering outbound investment limits as Beijing moves to revive the domestic economy, Reuters reports.
The rush to invest offshore reflects low confidence at home and is evident in sales of funds issued under the Qualified Domestic Institutional Investor (QDII) programme, a key outbound investment channel that allows chinese to buy overseas securities under Beijing's strict capital controls.
QDII fund units sold in January jumped 50 per cent year on year to a record high while those of domestic equity mutual funds dropped 35 per cent, data from the Asset Management Association of China shows. Assets under management for QDII funds were up 19 per cent year on year.
Exchange-traded funds (ETFs) tracking Nikkei 225 and Nasdaq-listed stocks flagged price premium risks in recent weeks as buyers bid well above the value of the underlying assets to grab a share.
SeaNews Turkey
The rush to invest offshore reflects low confidence at home and is evident in sales of funds issued under the Qualified Domestic Institutional Investor (QDII) programme, a key outbound investment channel that allows chinese to buy overseas securities under Beijing's strict capital controls.
QDII fund units sold in January jumped 50 per cent year on year to a record high while those of domestic equity mutual funds dropped 35 per cent, data from the Asset Management Association of China shows. Assets under management for QDII funds were up 19 per cent year on year.
Exchange-traded funds (ETFs) tracking Nikkei 225 and Nasdaq-listed stocks flagged price premium risks in recent weeks as buyers bid well above the value of the underlying assets to grab a share.
SeaNews Turkey
