FINANCE

Dollar’s Slide Sparks Surge in China’s Overseas Fund Investments as QDII Demand Heats Up

Published: Jul. 10, 2025 5:07 a.m. GMT+8, Updated: Jul. 10, 2025 5:07 a.m.

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China’s SAFE approves a fresh $3.08 billion in QDII quotas in June, 2025.

As the U.S. dollar weakens, Chinese investors are showing increased interest in overseas assets, driving a sharp rebound in QDII fund performance and prompting regulators to expand outbound investment quotas to meet rising demand.

The CSI QDII Fund Index, a benchmark tracking the performance of China’s Qualified Domestic Institutional Investor (QDII) funds, has jumped more than 17% in the past three months, climbing from 1,271 points in early April to 1,495 by July 7. The rally follows a broad decline in the dollar, U.S. equities and Treasuries, as markets increasingly price in the risks of “de-dollarization”. These funds invest primarily in overseas markets.

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The CSI QDII Fund Index rose over 17% from April to July 2024 as Chinese investors sought more overseas assets amid a weaker U.S. dollar.
Regulators granted $3.08 billion in new QDII quotas to 82 institutions in June to meet surging demand for global investments.
Fund managers adjusted subscription limits to manage inflows, with some imposing tighter restrictions to prevent overheating as offshore allocation interest remains strong.

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Who’s Who

HuaAn Fund Management Co. Ltd.: HuaAn Fund Management Co. Ltd. is one of the asset managers that adjusted its QDII products following a fresh allocation of $3.08 billion in QDII quotas by Beijing. They were among the nearly 80 firms granted new QDII quotas in June, receiving between $10 million to $50 million, to meet the rising demand for overseas assets from Chinese investors.

China Universal Asset Management Co. Ltd.: China Universal Asset Management Co. Ltd. is a Chinese asset management firm. Following new QDII quota allocations, China Universal Asset Management adjusted its QDII products, including resuming subscriptions for its Nasdaq Biotechnology ETF feeder fund, to meet increased investor demand for overseas assets.

Hwabao WP Fund Management Co. Ltd.: Hwabao WP Fund Management Co. Ltd. is one of several asset managers that received a new QDII quota from Beijing. In response, they increased the daily purchase limit for their Zhiyuan Mixed QDII Fund tenfold, from 20,000 yuan to 200,000 yuan.

Penghua Fund Management Co. Ltd.: Penghua Fund Management Co. Ltd. is a Chinese asset manager that recently received a new QDII quota from Beijing. In response, it doubled the daily purchase limit for its Global Short and Medium-Term Bonds Securities Investment Fund to 100,000 yuan. However, it also imposed tighter restrictions on its High-Yield Bond Securities Investment Fund (QDII).

Bank of China: Bank of China's USD-denominated Bond Fund has suspended large subscriptions and recurring investments to protect existing holders and stabilize net asset values amid market volatility. This bank was among 80 firms recently granted new QDII quotas.

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What Happened When

Early April 2025：: The CSI QDII Fund Index stood at 1,271 points.

April 2025：: There was a simultaneous drop in the U.S. dollar, U.S. equities, and Treasuries, marking a significant moment in the global repricing of de-dollarization.

June 18, 2025：: Zhu Hexin, Deputy Governor of the People’s Bank of China and SAFE Administrator, announced at the Lujiazui Forum that new QDII quotas would soon be issued.

June 19, 2025：: SAFE published a list of 82 entities (16 banks, 60 fund managers, and 6 brokerages) receiving a total of $3.08 billion in new QDII quotas.

Late June 2025：: Beijing approved a fresh $3.08 billion in QDII quotas, stimulating investor enthusiasm.

By July 7, 2025：: The CSI QDII Fund Index climbed to 1,495 points.

Starting July 7, 2025：: Penghua Fund Management Co. Ltd.’s Global Short and Medium-Term Bonds Securities Investment Fund doubled its daily purchase limit to 100,000 yuan per account.

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