RMB fall forces QDII managers to take action
The weakening renminbi has boosted demand for foreign assets, leading Chinese fund firms – already short of QDII quota – to suspend subscriptions or switch to using Stock Connect.
A recent rise in Chinese investor demand for foreign exposure, sparked by recent renminbi depreciation, has led mainland fund houses to suspend subscriptions to QDII products or switch to using Stock Connect to gain Hong Kong equity exposure.
Managers of products under the qualified domestic institutional investor (QDII) scheme – which allows Chinese institutions to buy foreign traditional assets – were already under pressure due to a shortage of QDII quota. The latest mainland ma…
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