Since February, more than 20 QDII funds have suspended large-amount subscriptions

On the first trading day after the Spring Festival, several QDII funds announced they are suspending large-scale subscriptions. Since February, more than 20 QDII funds have gradually announced “closed doors” to new investors.

Industry insiders say that purchase restrictions on QDII funds are usually due to foreign exchange quota limits, control of fund size, protection of investors’ interests, and other factors. They also remind investors that the performance of QDII funds is highly correlated with overseas market fluctuations. Some sectors, such as U.S. tech stocks, are more volatile, and there are risks related to exchange rates and overseas regulations. Investors should invest rationally and avoid blindly chasing high or following the trend.

Over 20 QDII funds “close their doors”

On February 24, Morgan Global Emerging Markets Hybrid (QDII) announced that to ensure the stable operation of the fund and protect the interests of fundholders, starting February 24, the daily purchase, regular fixed investments, and transfer-in amounts for a single fund account are limited to 1,000 yuan (including 1,000 yuan). For amounts exceeding 1,000 yuan, the fund manager has the right to refuse. The fund manager will announce separately when large-scale subscriptions, regular fixed investments, and transfer-in services are resumed.

Additionally, Hua’an Hang Seng Technology ETF Launch-Linked (QDII) and Hua’an Hang Seng Internet Technology Industry ETF Launch-Linked (QDII) also announced on February 25 that large subscriptions and regular investments are suspended, with purchase limits of 500 yuan and 5,000 yuan, respectively.

According to incomplete statistics, excluding factors such as overseas stock exchange closures, since February, over 20 QDII funds have announced suspensions of large-scale subscriptions, with some products’ single-day purchase limits dropping as low as 10 yuan.

Industry insiders say that restrictions on QDII funds are generally due to foreign exchange quota limits, control of fund size, and protection of investors’ interests.

A QDII fund manager in Shanghai explained that fund companies need to obtain QDII investment quotas issued by the State Administration of Foreign Exchange to invest in overseas stocks or bonds. Since QDII investments occupy the fund company’s foreign exchange quota, when overseas markets perform well and investors buy large amounts of QDII, the available foreign exchange quota decreases. If the quota is nearly exhausted, the fund company will implement purchase restrictions.

A QDII fund manager in Shenzhen believes that controlling the fund size is one of the key reasons for imposing purchase limits. If the fund becomes too large, it may affect the fund’s operational strategy and flexibility in adjusting holdings. Therefore, fund companies will control the size when necessary to avoid negative impacts on fund operations.

“Purchase restrictions also protect the interests of holders. For example, in a Nasdaq index ETF linked fund, if everyone rushes to buy in a single day, the new funds cannot be invested immediately. The fund manager needs to buy in batches. During this process, uninvested funds usually remain as cash in the fund account, which does not generate returns. Since this cash is included in the fund’s assets, the overall daily return for existing holders doesn’t change much, but their share of the profit distribution increases, diluting individual returns. Therefore, purchase restrictions can also protect holders’ interests by preventing their returns from being diluted,” the person explained.

Risks Still Need Attention

Avoid blindly chasing high or following the trend

Wind data shows that as of February 24, over 60% of QDII funds have suspended or limited large-scale subscriptions. Due to purchase restrictions, large inflows into the secondary market to buy fund shares have driven some products’ premiums to surge. Currently, one Nasdaq tech ETF’s premium exceeds 16%, and several passive index-based QDII funds have premiums ranging from 5% to 10%.

Looking at QDII fund issuance, only 19 products were established in 2025, with a total fundraising of 19.48 billion yuan. As 2026 begins, five new QDII funds have been launched, many focusing on popular sectors like Hong Kong stocks, consumer goods, and technology.

Investors should remain cautious of the investment risks associated with QDII funds. A public fund professional in Shanghai reminded that the performance of these products is highly correlated with overseas market fluctuations. Some sectors, such as U.S. tech stocks, are more volatile, and there are risks related to exchange rates and overseas regulations. Investors should invest rationally and avoid blindly chasing high or following the trend.

GF Fund also reminds investors that if there are new purchase restrictions on QDII funds, the fund will publish an announcement in advance. Investors can check the announcement for details such as the start date of suspension, reasons for restrictions, limit amounts, and other notices. If the restrictions are eased or new quotas are added, the fund will also announce this in advance. Investors should stay updated with these notices to understand the latest purchase restrictions and consider diversifying across similar products to meet their investment needs.