Funds are scrambling to speculate on crossborder ETFs
Posted: Tue Feb 18, 2025 7:01 am
Looking ahead, the new "Nine National Policies" emphasize the construction of a policy system that supports "longterm money and longterm investment". Broadbased ETFs cover a wide range of industries, have a large number of constituent stocks, and have relatively dispersed risks. For institutional investors with long investment cycles and high requirements for stability, broadbased ETFs have become an important allocation tool.
Judging from overseas experience, in a lowinterest rate environment, funds often choose to go overseas and increase their allocation to highyield overseas assets. Looking forward, the lack of supply of QDII quotas may become the norm.
In May this year, QDII funds ushered in a new round of expansion. As albania phone number list of the end of May , the cumulative approved QDII quota was US$. billion, an increase of US$. billion from the end of April. fund companies including E Fund, GF Fund, China Asset Management, Bosera Fund, and Dacheng Fund Management received an additional quota of US$ million.
However, at the end of the year, warnings of high premiums for QDII products were issued frequently again, and more than of QDII products were subject to purchase restrictions or were closed to customers. In the future, purchase restrictions on QDII funds will be the "new normal."
The urgency of QDII quota is also reflected in the high premium of ETFs. Due to the existence of secondary market trading and subscription and redemption mechanisms, this year funds chose to speculate on smaller ETFs when the Hong Kong stock market is closed and the Ashare market is trading normally. This is the case for everything from gold stock ETFs to the recent Hong Kong stock dividend strategy ETFs.
Judging from overseas experience, in a lowinterest rate environment, funds often choose to go overseas and increase their allocation to highyield overseas assets. Looking forward, the lack of supply of QDII quotas may become the norm.
In May this year, QDII funds ushered in a new round of expansion. As albania phone number list of the end of May , the cumulative approved QDII quota was US$. billion, an increase of US$. billion from the end of April. fund companies including E Fund, GF Fund, China Asset Management, Bosera Fund, and Dacheng Fund Management received an additional quota of US$ million.
However, at the end of the year, warnings of high premiums for QDII products were issued frequently again, and more than of QDII products were subject to purchase restrictions or were closed to customers. In the future, purchase restrictions on QDII funds will be the "new normal."
The urgency of QDII quota is also reflected in the high premium of ETFs. Due to the existence of secondary market trading and subscription and redemption mechanisms, this year funds chose to speculate on smaller ETFs when the Hong Kong stock market is closed and the Ashare market is trading normally. This is the case for everything from gold stock ETFs to the recent Hong Kong stock dividend strategy ETFs.