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China is currently expanding its quotas for Qualified Domestic Institutional Investors (QDII) in response to rising demand from mainland investors seeking offshore assets.
Recently, efforts have been intensified to expedite the issuance of a new round of QDII quotas, aiming to better support domestic residents’ legitimate and compliant overseas securities investments. A representative from the foreign exchange regulator emphasized that the upcoming quotas will benefit market institutions with strong investment management skills and strict compliance standards. These institutions are expected to play a more significant role in QDII operations, with a special focus on increasing access for retail investors through public fund products.
The financial authorities had already indicated the imminent release of additional QDII quotas during an economic forum in Shanghai held last month.
As of the end of June 2026, around 193 institutions across banking, securities, funds, insurance, and trust sectors have been allocated a total of approximately USD 176.17 billion in QDII investment quotas. This marks an increase of USD 5.3 billion from USD 170.87 billion at the end of December of the previous year. The quotas allocated to securities and fund institutions account for about USD 97.28 billion.
The main destinations for QDII investments remain the Hong Kong and U.S. markets, which together encompass over 90% of total allocations.
With the ongoing rise in mainland investors’ interest in global assets, the importance of QDII is expected to grow, fostering deeper two-way financial market integration, according to a recent research report.
The QDII program was launched in 2006, enabling domestic institutions to invest in international capital markets primarily through mutual funds and exchange-traded funds.
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