Posted inChina

China issues $9bn worth of QDII quotas

Most of the recipients were fund management companies.

China has issued $9.02bn worth of quotas to 21 firms under the qualified domestic institutional investor (QDII) scheme last week, according to data from the State Administration of Foreign Exchange (SAFE).

Launched in 2006, the QDII programme allows domestic institutions and fund managers to invest in offshore investments within allowable quotas.

The move comes after the regulator said last year it was planning to dish out more quotas. In 2020, there were three rounds of quota issuances, which totalled $12.72bn. Before that, the last time the regulator issued quotas was in April 2019.

Most of the firms that received the fresh quotas were fund management companies (14 in total), which received 90% of the new quota, compared to 63% issued in 2020, according to data from Z-Ben Advisors.

Six mutual fund companies each received sizable quotas of $800m, while four firms each received quotas between $500m-$700m, according to SAFE data (see below).

The other firms that received quotas were three wealth management subsidiary of banks, two banks, and two insurance companies.

Z-Ben noted that Bank of Ningbo (BNB) Wealth Management became the second bank wealth management subsidiary to receive its own quota, after PSCB Wealth Management in September, while Citi is now the largest bank quota holder with $3.5bn after its first new issuance in 2014, Z-Ben noted.

Firms that received quotas

FirmQuota given on 13 Jan ($m)Total quota as of 13 Jan ($m)Firm type
E Fund Management8003850Fund management company
China Southern Asset Management8003750Fund management company
Bosera Asset Management8002850Fund management company
GF Fund Management8002450Fund management company
Fullgoal Fund Management8002130Fund management company
China Universal Asset Management8001400Fund management company
China Merchants Fund Management7002000Fund management company
Penghua Fund Management6001700Fund management company
Yinhua Fund Management6001500Fund management company
Harvest Fund Management5004100Fund management company
Fortune SG Fund Management3001350Fund management company
CITIC-Prudential Fund Management 3001130Fund management company
AIA Life Insurance300468Insurance company
Caitong Fund Management200370Fund management company
RongTong Fund Management1501050Fund management company
Taikang Insurance (first-time recipient)150150Insurance company
Citibank (China)1003500Bank
China Merchants Bank100300Bank’s wealth management subsidary
China Everbright Bank100200Bank’s wealth management subsidary
BNB Wealth Management (first-time recipient)100100Bank’s wealth management subsidary
Hang Seng Bank (China)2050Bank
Source: SAFE

Since the programme began, SAFE has granted $125.7bn in QDII quotas to 171 licence holders, with Ping An Insurance Group having the largest quota of $7.59bn, followed by Sino Life Insurance ($4.41bn), Harvest Fund Management ($4.1bn), China Asset Management ($3.85bn), and E Fund Management ($3.85bn).

Part of the Mark Allen Group.