China Approves $68.4 Billion More QDII Quota, Raising Total to $1.83 Trillion

China's State Administration of Foreign Exchange approved a new batch of QDII quotas on August 28, adding $68.4 billion and lifting the cumulative approved quota from $1.76169 trillion to $1.83009 trillion, according to Jiemian News. The latest allocation includes $30.99 billion for 45 banks, $101 billion for 79 securities and fund firms, and $42.003 billion for 48 insurance and insurance asset managers; 23 trust firms received no new quota. Among the banks, China Industrial and Commercial Bank/ICBC Wealth Management, Bank of East Asia, HSBC, Hang Seng Bank and others each received $100 million, while East West Bank and China CITIC Bank International were approved for the first time, also with $100 million each. In the securities and fund category, E Fund, ChinaAMC, GF Fund, Bosera and 22 other public funds each received $100 million, and Xinyuan Fund was approved for the first time with the same amount. In insurance, China Ping An Insurance, China Life Insurance, Taikang Life Insurance and New China Life Insurance were among 12 firms that together gained $1.36 billion. The quota expansion had been signaled earlier: on June 17, SAFE head Zhu Hexin said at the Lujiazui Forum that a new batch of QDII investment quotas would be issued soon to meet reasonable overseas investment demand from domestic entities. Jiemian News also reported that many QDII funds have tightened subscription limits amid strong demand and limited quota supply, with some products capping daily purchases at as little as 10 yuan.