New investment quotas quickly "go live" QDII products collectively open for business

In recent days, with the State Administration of Foreign Exchange approving a new batch of QDII investment quotas, multiple public fund managers have moved quickly to allocate the quotas to their popular QDII products. From March 31 to April 1, a range of popular QDII products—including the S&P 500, the Nasdaq-100, Nasdaq biotechnology, dollar-denominated bonds, and Hang Seng Tech—successively announced increases to their subscription limits. Some of the newly approved QDII quotas were promptly issued to investors for subscription.

In recent years, overseas investment interest has remained high. Tight QDII quotas not only trigger crowding and bidding for on-exchange products, pushing up the premium rates of listed products, but also lead off-exchange products to continue tightening their purchase restrictions, and even to “close the door to new customers.” Industry institutions believe that the newly added QDII quotas will help improve the subscription experience for products and stabilize market expectations. In terms of quota allocation, the product side may depend on comprehensive considerations by fund managers regarding product types, market demand, and risk-return characteristics, while the sales side may face competition and game-playing among different business lines.

QDII products loosen subscription restrictions

Recently, several public QDII products have eased their subscription restrictions.

According to the announcements, the subscription limit for the Morgan S&P 500 Index (QDII) RMB share was increased from 50 yuan to 100 yuan; the subscription limit for the E Fund Nasdaq-100 ETF-initiated feeder (QDII) RMB share was increased from 100 yuan to 50k yuan; and E Fund Nasdaq Biotechnology ETF resumed subscription business. At the same time, the subscription limit for its feeder fund’s RMB share was increased from 1,000 yuan to 50k yuan.

Several QDII products that had previously “closed the door to new customers” have resumed accepting subscriptions. Tianhong Nasdaq-100 Index (initiated) (QDII), Tianhong S&P 500 (initiated) (QDII-FOF), and Bayi Nasdaq-100 Index (initiated) (QDII) all resumed processing subscription applications. The first two products paused large subscription business above 1,000 yuan, while the latter paused large subscription business above 50k yuan.

Not only index products—some active-style QDII products are also loosening subscription restrictions. This time, the subscription limit for Manulife India Equity (QDII) was increased from 500 yuan to 100k yuan; the subscription limits for 华夏 Overseas Enjoy Hybrid (initiated) (QDII) and 华夏 Mobile Internet Hybrid (QDII) RMB shares were increased from 5,000 yuan to 10k yuan. Great Wall Global New Energy Vehicle Equity (initiated) (QDII) resumed large subscription business and no longer sets an upper limit on subscription amounts.

Bond-type QDII products have also taken steps to relax restrictions. BOC USD Bond (QDII) and BOC Asia-Pacific Select Bond (QDII) both increased their subscription limits for RMB shares from 100k yuan to 300k yuan. Industrial and Commercial Bank of China Global USD Bonds even continued to relax restrictions. Previously, its subscription limit was increased from 100 yuan to 5,000 yuan, and was further increased to 500k yuan.

This time, Hong Kong stock QDII products are generally more generous in terms of quota. The subscription limits for Huaan Hang Seng Tech ETF-initiated feeder (QDII) and Huaan Hang Seng Internet Technology Industry ETF-initiated feeder (QDII) were increased from 500 yuan and 5,000 yuan respectively to 1M yuan. The subscription limit for E Fund Hang Seng Tech ETF feeder (QDII), initiated, was increased from 50k yuan to 200k yuan.

Subscription experience is expected to improve

A table released on March 27 by the State Administration of Foreign Exchange shows the approval status of QDII investment quotas for qualified domestic institutional investors (QDII). On March 23, 2026, domestic institutions such as public fund companies were approved for a new batch of QDII quotas, which is 9 months since the last batch was approved.

This time, securities fund–related institutions received newly approved QDII quotas totaling nearly 3 billion USD. The total QDII quota increased from 50k USD to 50k USD.

Among them, E Fund, 华夏基金, 广发基金, 博时基金, Morgan Asset Management, 华安基金, 富国基金, 天弘基金, 国泰基金, 华泰柏瑞基金, 汇添富基金, 华宝基金, 大成基金, 景顺长城基金, 宏利基金, 万家基金, 东方红资产管理, 创金合信基金, 安信基金, etc., all added 80 million USD worth of QDII quotas. South Fund, 招商基金, 鹏华基金, 银华基金, 国海富兰克林基金, 中欧基金, 中银基金, 长信基金, 长城基金, 工银瑞信基金, 浦银安盛基金, 国寿安保基金, 宝盈基金, etc., all added 60 million USD worth of QDII quotas.

Guotai Fund stated that the newly added QDII quotas will effectively ease prior problems such as subscription restrictions and high premiums in the exchange market caused by insufficient quotas for popular products. Most products are expected to resume normal subscriptions. Investors no longer need to bid up prices to rush in, which is conducive to improving product subscription experience and stabilizing market expectations.

Quota allocation is tight and becomes a challenge

After this new batch of QDII quotas was approved, how to allocate them has become a hot topic of concern in the industry.

A reporter from China Securities Journal learned from Guotai Fund that after the new batch of QDII quotas was approved, the company will conduct overall planning and a reasonable allocation by considering the overall overseas investment layout, product operation needs, and investors’ actual allocation situation. The allocation of QDII quotas is mainly used for public funds to ensure smooth and orderly business operations. The timing and sequence of quota deployment are primarily determined based on a comprehensive assessment of product type, market demand, risk-return characteristics, and compliance operation conditions, so as to steadily meet investors’ cross-border asset allocation needs.

Another public fund industry source told China Securities Journal that the allocation of QDII quotas is mainly considered based on the investment direction of QDII products and the current valuation levels, among other factors. It selects an appropriate window to loosen subscription restrictions—for example, “if U.S. stock funds have seen a larger pullback recently. If the fund company still believes in the prospects of U.S. stocks going forward and judges that this is a suitable allocation window, then QDII quotas may be allocated first to such products.”

Tight QDII quotas will also put fund companies in competition and give rise to a game among their internal sales lines.

“Some QDII products that invest in U.S. stock technology sectors have had standout historical performance, so they don’t have to worry about selling at all. Especially when there is high popularity on internet platforms, once QDII quotas are released, the news will quickly spread on social platforms, attracting many C-end investors to add positions voluntarily, and the quota will be snapped up quickly. Therefore, after new QDII quotas are approved, how to allocate among institutions, channels, and internet financial sales lines may depend on the internal judgment of the fund company,” the public fund source revealed.

To encourage the development of inclusive finance, regulators previously required fund companies to prioritize using QDII quotas for public funds and reduce the proportion of quotas allocated to private accounts. The reporter from China Securities Journal learned from industry sources that some fund companies have already begun liquidation actions for QDII private-account products held to maturity, in order to free up more QDII quotas to provide to public fund products. Some fund companies strictly control the scale of QDII private-account products and steadily optimize the existing portfolio structure, to ensure that the overall quota allocation meets policy guidance and the requirements of inclusive finance.

(Editor: Xu Nannan)

Keywords: