QDII funds take the lead in performance, but the quota is urgent?

Thanks to US stocks and Hong Kong stocks leading the rise in the world's major stock markets, QDII funds in overseas markets once again took the lead. Data show that as of December 25, the average return of QDII funds has reached 14.46% so far this year, making it the most profitable fund category of the year. However, contrary to the positive performance trend, the number of newly established QDII funds has plummeted this year, and the purchase of products has been suspended.

Us and Hong Kong stocks take the lead in global QDII fund performance

Since the outbreak of the financial crisis in 2008, the Dow Jones Index fell below 10000 points and hit the bottom, the U. S. stock market began to gradually rebound. So far, U. S. stocks have maintained a super bull market for eight years. Coincidentally, the Hong Kong stock market has also ushered in spring in recent years. Against the backdrop of the successive opening of the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect, the Hang Seng Index has risen more than 30% this year after years of weakness.

Thanks to the global gains of US and Hong Kong stocks, QDII funds in overseas markets once again took the lead in performance. Data show that as of December 25, the average return of QDII funds so far this year has been as high as 14.46%, making it the most profitable fund category of the year. Among them, Yi Fangda China Securities overseas connected QDII, which currently occupies the first place in the public offering ETF, is a new fund established on January 4 this year. According to its third quarterly report, the top three positions in the fund are BABA, Baidu, Inc. and Tencent, all accounting for more than 20 per cent of the fund's net asset value.

On the basis of the return of value, Chinese stocks such as BABA, Tencent, Baidu, Inc., Sina, Weibo Corp and so on rose astonishingly. Since the beginning of this year, Baidu, Inc. 's shares have risen nearly 50%, while BABA and Tencent have more than doubled. Therefore, Yifangda China Securities overseas interconnected ETF has achieved good results. At the same time, the private equity fund Oriental value Fund No. 2 and Oriental value Fund No. 3, which focus on the investment of US Chinese stocks, are also doing well. As of November 30, 2017, the net worth was 1.43 and 1.45 respectively.

Thanks to the good momentum of interest rate increases, tax cuts and economic growth, it is widely believed that US stocks will continue to rise steadily in 2018. For the important technology sector of Chinese stocks, technology stocks are much lower than they were during the dotcom bubble around 2000, and more importantly, earnings growth is strong enough to support share prices to continue to rise. The future return of the QDII fund is still predictable.

QDII fund quota is urgent, many products "thank customers behind closed doors"

During the year, the performance of QDII funds became popular, but many public fund companies slowed down their layout. Data show that as of December 25, 31 new QDII funds were added during the year, a significant decrease from 53 in the same period last year, with a decline of about 40%.

In terms of the size of the initial public offering, only RMB in Huijianfu Global Healthcare mixed Fund and Franklin Guohai US Dollar Bond Fund regularly opened RMB two products with an initial offering size of more than 500 million yuan, while last year Eight QDII funds, including Huaxia Greater China Credit Select Bond Fund (QDII), Southern Asian Dollar income Bond Fund, and Dacheng Hang Seng Comprehensive small and medium Stock Index Fund (QDII-LOF), have raised more than 500 million yuan.

In addition to incremental QDII funds falling into the slow lane of issuance, stock QDII funds have issued "purchase restrictions" since the beginning of this year. Data show that so far, a number of QDII funds have issued "purchase restriction orders", including investment promotion credit fixed bonds (QDII) US dollars, long letter overseas income one-year fixed bonds, Cathay Pacific American Real Estate Development stocks (QDII) and other funds announced the suspension of purchase. Bank of China dollar bond (QDII) RMB share, Yi Fonda NASDAQ 100 Index Fund (LOF), ICBC Credit Suisse China opportunity Global allocation Equity Fund and so on are currently suspending large amounts of funds to purchase.

For the reasons why the QDII fund, which should have been sold and sold, frequently opened the closed-door model, industry insiders believe that fund companies are qualified to have no quota, and the urgent QDII fund quota has become an important reason why the performance is popular but the issue is not as good as in previous years. Cen Saiindium, vice president of bedrock Capital, believes that in order to prevent capital outflow, safe strictly controls foreign exchange funds, and no new QDII investment quota has been approved in the past two years, and the foreign exchange quota held by fund companies is already very rare, so many fund companies have to suspend or suspend large applications for their QDII funds.

According to the latest "qualified domestic Institutional Investor (QDII) Investment quota approval Table" disclosed by safe, safe has not added any new quota to fund companies since the end of March 2015. When the QDII business was liberalized, the total quota approved by the State Council was 90 billion US dollars, which has now been carved up by various major agencies.

"the restrictions on purchase will continue. First of all, domestic investors have increased awareness of global asset allocation; in addition, the Federal Reserve has entered the cycle of raising interest rates and shrinking the schedule, the RMB is facing devaluation pressure, and the demand for overseas investment of funds has increased; third, since the beginning of this year, the QDII fund has made obvious money-making effect, and the overall asset scale has increased, which is highly sought after by investors. The increase in overall demand will lead to a shortage of quotas, and safe is slow to approve foreign exchange quotas in order to prevent capital outflow, resulting in fund companies restricting large applications. " Censai indium said frankly.