CHINESE investors are showing increased interest in overseas assets, driving a sharp rebound in QDII fund performance and prompting regulators to expand outbound investment quotas to meet rising demand, reports Caixin.
Historically, QDII funds have delivered market-beating returns, especially during periods of strong US market performance. For example, in one eight-month stretch, they returned 6.6 per cent, outperforming domestic equity mutual funds.
The CSI QDII Fund Index, a benchmark tracking the performance of China's Qualified Domestic Institutional Investor (QDII) funds, has jumped more than 17 per cent in the past three months, climbing from 1,271 points in early April to 1,495 by July 7.
The rally follows a broad decline in the dollar, US equities and Treasuries, as markets increasingly price in the risks of 'de-dollarization.' These funds invest primarily in overseas markets.
Investor enthusiasm intensified after Beijing approved a fresh US$3.08 billion in QDII quotas in late June, unlocking more channels for domestic investors to access global markets via banks, mutual funds and wealth management products.
SeaNews Turkey
Historically, QDII funds have delivered market-beating returns, especially during periods of strong US market performance. For example, in one eight-month stretch, they returned 6.6 per cent, outperforming domestic equity mutual funds.
The CSI QDII Fund Index, a benchmark tracking the performance of China's Qualified Domestic Institutional Investor (QDII) funds, has jumped more than 17 per cent in the past three months, climbing from 1,271 points in early April to 1,495 by July 7.
The rally follows a broad decline in the dollar, US equities and Treasuries, as markets increasingly price in the risks of 'de-dollarization.' These funds invest primarily in overseas markets.
Investor enthusiasm intensified after Beijing approved a fresh US$3.08 billion in QDII quotas in late June, unlocking more channels for domestic investors to access global markets via banks, mutual funds and wealth management products.
SeaNews Turkey
